Answer:
Please see explanation
Explanation:
The four different approaches for calculating operating cash flows are given as follows:
1.Operating cash flow=Earning before tax+ Depreciation expense – Tax expense
=($124,000-$58,000-$12,700)+$12,700-[($124,000-$58,000-$12,700)*34%]
=$53,300+$12,700-$18,122
=$47,878
2.Operating cash flow=Sales-expenses other than depreciation-Tax expense
=$124,000-$58,000-[($124,000-$58,000-$12,700)*34%]
=$124,000-$58,000-$18,122
=$47,878
3.Operating cash flow=(Sales-expenses other than depreciation)*(1-tax rate)+tax rate*depreciation
=($124,000-$58,000)*(1-0.34)+0.34*$12,700
=$43,560+$4,318
=$47,878
4.Operating cash flow=Net income+depreciation
=Sales-costs-depreciation-tax expense+depreciation
=$124,000-$58,000-$12,700-$18,122+$12,700
=$47,878