8. The Pizza Parlor paid $3,500 in dividends and $17,600 in interest over the past year. Sales totaled $211,800 with costs of $167,900. The depreciation expense was $16,500. The applicable tax rate is 34 percent. What is the amount of the operating cash flow?

Question

8. The Pizza Parlor paid $3,500 in dividends and $17,600 in interest over the past year. Sales totaled $211,800 with costs of $167,900. The depreciation expense was $16,500. The applicable tax rate is 34 percent. What is the amount of the operating cash flow?

Answer 1

Operating cash flow can be calculated using the formula:

Operating cash flow = Sales - Costs - Depreciation

Operating cash flow = $211,800 - $167,900 - $16,500
Operating cash flow = $27,400

Therefore, the amount of the operating cash flow is $27,400.