QuestionFind the operating cash flow (OCF) for Graff, Inc. with sales \$42,380, costs \$13,740, depreciation \$2,990, interest \$2,180, tax rate 21%.

Studdy Solution

STEP 1

Assumptions1. The sales amount is \$42,380. The costs amount is \$13,7403. The depreciation expense is \$,9904. The interest expense is \$,1805. The tax rate is21%

STEP 2

First, we need to calculate the earnings before interest and taxes (EBIT). This is done by subtracting the costs and depreciation from the sales.
$EBIT = Sales - Costs - Depreciation$

STEP 3

Now, plug in the given values for the sales, costs, and depreciation to calculate theBIT.
$EBIT = \$42,380 - \$13,740 - \$2,990$

STEP 4

Calculate theBIT.
$EBIT = \$42,380 - \$13,740 - \$2,990 = \$25,650$

STEP 5

Next, we need to calculate the taxes. This is done by multiplying theBIT by the tax rate.
$axes =BIT \\times Tax\, rate$

STEP 6

Now, plug in the given values for theBIT and tax rate to calculate the taxes.
$axes = \$25,650 \\times21\%$

STEP 7

Convert the percentage to a decimal value.
$21\% =0.21$ $axes = \$25,650 \\times0.21$

STEP 8

Calculate the taxes.
$axes = \$25,650 \\times0.21 = \$5,386.50$

STEP 9

Now that we have the taxes, we can find the operating cash flow (OC). This is done by subtracting the taxes from theBIT and then adding the depreciation.
$OC =BIT - Taxes + Depreciation$

STEP 10

Plug in the values for theBIT, taxes, and depreciation to calculate the OCF.
$OC = \$25,650 - \$5,386.50 + \$2,990$

STEP 11

Calculate the OCF.
$OC = \$25,650 - \$5,386.50 + \$,990 = \$23,253.50$ The operating cash flow is \$23,254 when rounded to the nearest whole number.

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QuestionFind the operating cash flow (OCF) for Graff, Inc. with sales \$42,380, costs \$13,740, depreciation \$2,990, interest \$2,180, tax rate 21%.

Studdy Solution

STEP 1

Assumptions1. The sales amount is \$42,380. The costs amount is \$13,7403. The depreciation expense is \$,9904. The interest expense is \$,1805. The tax rate is21%

STEP 2

First, we need to calculate the earnings before interest and taxes (EBIT). This is done by subtracting the costs and depreciation from the sales.
$EBIT = Sales - Costs - Depreciation$

STEP 3

Now, plug in the given values for the sales, costs, and depreciation to calculate theBIT.
$EBIT = \$42,380 - \$13,740 - \$2,990$

STEP 4

Calculate theBIT.
$EBIT = \$42,380 - \$13,740 - \$2,990 = \$25,650$

STEP 5

Next, we need to calculate the taxes. This is done by multiplying theBIT by the tax rate.
$axes =BIT \\times Tax\, rate$

STEP 6

Now, plug in the given values for theBIT and tax rate to calculate the taxes.
$axes = \$25,650 \\times21\%$

STEP 7

Convert the percentage to a decimal value.
$21\% =0.21$ $axes = \$25,650 \\times0.21$

STEP 8

Calculate the taxes.
$axes = \$25,650 \\times0.21 = \$5,386.50$

STEP 9

Now that we have the taxes, we can find the operating cash flow (OC). This is done by subtracting the taxes from theBIT and then adding the depreciation.
$OC =BIT - Taxes + Depreciation$

STEP 10

Plug in the values for theBIT, taxes, and depreciation to calculate the OCF.
$OC = \$25,650 - \$5,386.50 + \$2,990$

STEP 11

Calculate the OCF.
$OC = \$25,650 - \$5,386.50 + \$,990 = \$23,253.50$ The operating cash flow is \$23,254 when rounded to the nearest whole number.

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QuestionFind the operating cash flow (OCF) for Graff, Inc. with sales \$42,380, costs \$13,740, depreciation \$2,990, interest \$2,180, tax rate 21%.

Studdy Solution

STEP 1

Assumptions1. The sales amount is \$42,380. The costs amount is \$13,7403. The depreciation expense is \$,9904. The interest expense is \$,1805. The tax rate is21%

STEP 2

First, we need to calculate the earnings before interest and taxes (EBIT). This is done by subtracting the costs and depreciation from the sales.EBIT=Sales−Costs−DepreciationEBIT = Sales - Costs - DepreciationEBIT=Sales−Costs−Depreciation

STEP 3

Now, plug in the given values for the sales, costs, and depreciation to calculate theBIT.EBIT=$42,380−$13,740−$2,990EBIT = \$42,380 - \$13,740 - \$2,990EBIT=$42,380−$13,740−$2,990

STEP 4

Calculate theBIT.EBIT=$42,380−$13,740−$2,990=$25,650EBIT = \$42,380 - \$13,740 - \$2,990 = \$25,650EBIT=$42,380−$13,740−$2,990=$25,650

STEP 5

Next, we need to calculate the taxes. This is done by multiplying theBIT by the tax rate.axes=BITtimesTax rateaxes =BIT \\times Tax\, rateaxes=BITtimesTaxrate

STEP 6

Now, plug in the given values for theBIT and tax rate to calculate the taxes.axes=$25,650times21%axes = \$25,650 \\times21\%axes=$25,650times21%

STEP 7

Convert the percentage to a decimal value.21%=0.2121\% =0.2121%=0.21axes=$25,650times0.21axes = \$25,650 \\times0.21axes=$25,650times0.21

STEP 8

Calculate the taxes.axes=$25,650times0.21=$5,386.50axes = \$25,650 \\times0.21 = \$5,386.50axes=$25,650times0.21=$5,386.50

STEP 9

Now that we have the taxes, we can find the operating cash flow (OC). This is done by subtracting the taxes from theBIT and then adding the depreciation.OC=BIT−Taxes+DepreciationOC =BIT - Taxes + DepreciationOC=BIT−Taxes+Depreciation

STEP 10

Plug in the values for theBIT, taxes, and depreciation to calculate the OCF.OC=$25,650−$5,386.50+$2,990OC = \$25,650 - \$5,386.50 + \$2,990OC=$25,650−$5,386.50+$2,990

STEP 11

Calculate the OCF.OC=$25,650−$5,386.50+$,990=$23,253.50OC = \$25,650 - \$5,386.50 + \$,990 = \$23,253.50OC=$25,650−$5,386.50+$,990=$23,253.50The operating cash flow is \$23,254 when rounded to the nearest whole number.

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Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

First, we need to calculate the earnings before interest and taxes (EBIT). This is done by subtracting the costs and depreciation from the sales.
$EBIT = Sales - Costs - Depreciation$

Now, plug in the given values for the sales, costs, and depreciation to calculate theBIT.
$EBIT = \$42,380 - \$13,740 - \$2,990$

Calculate theBIT.
$EBIT = \$42,380 - \$13,740 - \$2,990 = \$25,650$

Next, we need to calculate the taxes. This is done by multiplying theBIT by the tax rate.
$axes =BIT \\times Tax\, rate$

Now, plug in the given values for theBIT and tax rate to calculate the taxes.
$axes = \$25,650 \\times21\%$

Convert the percentage to a decimal value.
$21\% =0.21$ $axes = \$25,650 \\times0.21$

Calculate the taxes.
$axes = \$25,650 \\times0.21 = \$5,386.50$

Now that we have the taxes, we can find the operating cash flow (OC). This is done by subtracting the taxes from theBIT and then adding the depreciation.
$OC =BIT - Taxes + Depreciation$

Plug in the values for theBIT, taxes, and depreciation to calculate the OCF.
$OC = \$25,650 - \$5,386.50 + \$2,990$

Calculate the OCF.
$OC = \$25,650 - \$5,386.50 + \$,990 = \$23,253.50$ The operating cash flow is \$23,254 when rounded to the nearest whole number.