Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $ 302,400,000, cost of goods sold of $ 148,900,000, sales and administrative costs of $ 39,200,000, depreciation expense of $ 60,300,000, and a tax rate of 40 %.

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Karabo99 Karabo99 · Answer 1 · 2019-09-15T19:49:53+02:00

Answer:

The operating cash flow for the year is $ 92,700,000.

Explanation:

taxes = [(tax rate)/100]*(sales revenue - cost of goods sold - sales and administrative costs - depreciation expense )

= [(40)/100]*($ 302,400,000 - $ 148,900,000 - $ 39,200,000 - $ 60,300,000)

= $ 21600000

net income = $ 302,400,000 - $ 148,900,000 - $ 39,200,000 - $ 60,300,000 - $ 21600000

= $ 32400000

operating cash flow = net income + depreciation expense

= $ 32400000 + $ 60,300,000

= $ 92,700,000

Therefore, the operating cash flow for the year is $ 92,700,000.