Benson Inc has sales of $39580 costs of $13020, depreciation expense of $2670, and interest expense of $1940. The tax rate is 23 percent.
What is the operating cash flow?
Benson Inc has sales of $39580 costs of $13020, depreciation expense of $2670, and interest expense of $1940. The tax rate is 23 percent.
What is the operating cash flow?
To find the operating cash flow, we first need to calculate the earnings before interest and taxes (EBIT), then subtract depreciation and taxes, and finally add back depreciation.
Given:
Sales (Revenue) = $39,580
Costs = $13,020
Depreciation Expense = $2,670
Interest Expense = $1,940
Tax Rate = 23%
First, let's calculate Earnings Before Interest and Taxes (EBIT):
Next, let's calculate the taxes:
Now, let's find the operating cash flow (OCF):
So, the operating cash flow for Benson Inc. is $21,681.40.
Answer Step-by-step explanation:
Calculating Benson Inc.'s Operating Cash Flow:Here's how we can calculate Benson Inc.'s operating cash flow:
1. Calculate Earnings Before Interest and Taxes (EBIT):
EBIT = Sales - Cost of Goods Sold - Depreciation Expense EBIT = $39580 - $13020 - $2670 = $23900
2. Calculate Net Income:
Net Income = EBIT - Interest Expense * (1 - Tax Rate) Net Income = $23900 - $1940 * (1 - 0.23) = $20672.40
3. Calculate Operating Cash Flow:
Operating Cash Flow = Net Income + Depreciation Expense Operating Cash Flow = $20672.40 + $2670 = $23342.40
Therefore, Benson Inc.'s operating cash flow is $23,342.40.
Note: This calculation only considers the information provided and assumes there are no other adjustments needed for operating cash flow.
Answer:
To calculate the operating cash flow, we need to start with the earnings before interest and taxes (EBIT) and then adjust for non-cash expenses and changes in working capital.
EBIT = Sales - Costs - Depreciation expense - Interest expense
EBIT = $39,580 - $13,020 - $2,670 - $1,940
EBIT = $22,950
Next, we need to adjust for non-cash expenses. In this case, the only non-cash expense is depreciation:
Operating income before changes in working capital = EBIT + Depreciation
Operating income before changes in working capital = $22,950 + $2,670
Operating income before changes in working capital = $25,620
Finally, we need to adjust for changes in working capital. Since the problem does not provide any information on changes in working capital, we assume that there are no changes.
Therefore, the operating cash flow is equal to the operating income before changes in working capital:
Operating cash flow = $25,620
Thus, the operating cash flow of Benson Inc is $25,620.
Answer:
The Operating Cash Flow for Benson Inc is $31770
Step-by-step explanation:
The operating cash flow can be calculated by subtracting Operating Expenses (costs, depreciation, and interest) from Operating Income (sales).
Operating Income = Sales - Operating Expenses Operating Expenses = Costs + Depreciation + Interest
Substituting the given values:
Operating Income = $39580 - ($13020 + $2670 + $1940) = $31770
Therefore, the Operating Cash Flow for Benson Inc is $31770.
Answer:$22,450
Step-by-step explanation:
Operating Cash Flow = Net Income + Non-cash Expenses
Net Income = Sales - Costs - Depreciation Expense - Interest Expense - Tax Expense
Tax Expense = Tax Rate x (Sales - Costs - Depreciation Expense - Interest Expense)
Operating Cash Flow = (Sales - Costs - Depreciation Expense - Interest Expense) - (Tax Rate x (Sales - Costs - Depreciation Expense - Interest Expense)) + Depreciation Expense + Interest Expense
Operating Cash Flow = $39580 - $13020 - $2670 - $1940 - (0.23 x ($39580 - $13020 - $2670 - $1940)) + $2670 + $1940
Operating Cash Flow = $22,450
Answer:
I hope you find this helpful, please tag me in your next questions and like my answers and I will happily continue to help you
Step-by-step explanation:
Operational cash flow
Sales. =$39580
-cost. =$13020
-depreciation. =$2670
Operating income=$23890
-interest expense=$1940
income before tax=$21950
-tax=23%=0.23*21950=$5048.5
Tax income=$16901.5
Operational cash flow=Net income+non-cash expenses-increase in working capital
Operating cash Flow=$16901.5+$2670-0
Operating Cash flow=$19571.5
2Answer:
$19,571.50
Step-by-step explanation:
Operating cash flow generated by the company from its operations, in other words, the number of cash resources derived from operating activities, which is the total cash flow that would be shown under the operating activities section of the cash flow statement.
operating cash flow=net income+depreciation
The depreciation would be added back to the net income in a bid to determine the operating cash flow since it is a non-cash charge
Earnings before tax=sales-costs-depreciation-interest expense
Earnings before tax=$39580-$13,020-$2670-$1940
Earnings before tax=$21,950
Net income=earnings before tax*(1-tax rate)
tax rate =23%
net income=$21950*(1-23%)
net income=$16,901.50
depreciation=$2670
operating cash flow=$16,901.50+$2670
operating cash flow=
$19,571.50
Answer:
Answer:
Operating Cash flow is $19,440
Explanation:
Operating Cash flow
Sales = $38,530
-Costs = $12,750
-Depreciation = $2,550
Operating Income = $23,230
-Interest Expense = $1,850
Income before Tax = $21,380
-Tax = $4,490
Net Income = $16,890
Operating Cash Flow = Net Income + Non-Cash Expenses – Increase in Working Capital
Operating Cash flow = $16,890 + $2,550 - 0
Operating Cash flow = $19,440
Answer:
21,511.5
Step-by-step explanation:
Sales = $ 39,580
Less: Cost = $ 13,020
EBIDT = $ 26,560
less: Depreciation = $ 2,670
EBIT = $ 23,890
less: Interest = $ 1,940
EBT = $ 21,950
less: Taxes = $ 5,048.5 ( $ 21,950 * 23%)
Net Income = $ 16,901.50
Operating cash flow (OCF) = EBIT + depreciation - taxes
= $ 23,890 + $ 2,670 - $ 5,048.5
= $ 21,511.5
Answer: $19,571.5
Step-by-step explanation:
Based on indirect method of calculation, operating cash flow is net income adjusted for non-cash items like depreciation, AR and AP.
Profit before tax = Sales - costs - depreciation - interest = 39,580 - 13,020 - 2,670 - 1,940 = 21,950
Net Income = Profit before tax - tax = 21,950 - 23%*21,950 = 16,901.5
Operating cash flow = Net income + depreciation = 16,901.5 + 2,670 = 19,571.5
Answer:
Operating Cash flow=$19571.5
Step-by-step explanation:
Operational cash flow
Sales. =$39580
-cost. =$13020
-depreciation. =$2670
Operating income=$23890
-interest expense=$1940
income before tax=$21950
-tax=23%=0.23*21950=$5048.5
Tax income=$16901.5
Operational cash flow=Net income+non-cash expenses-increase in working capital
Operating cash Flow=$16901.5+$2670-0
Operating Cash flow=$19571.5
Note-Do ask if any doubt
please like and comment
