Ridiculousness, Inc., has sales of $42,500, costs of $23,800, depreciation expense of $2,000, and interest expense of $1,300.
If the tax rate is 35 percent, what is the operating cash flow, or OCF?
Operating cash flow:
Operating cash flow is the cash flow generated from the operations of the company or from the business activities of the company. It is given as the net operating profit after tax plus the non cash operating expenses minus the non cash operating income.