Your ﬁrm has net income of £198 on total sales of £1,200.Costs are £715 and depreciation is £145.The tax rate is 34%. The ﬁrm does not have interest expenses.What is the operating cash ﬂow?
A)£93
B)£241
C)£340
D)£383
E)£485

Question

Quizplus · Accepted Answer

Operating cash flow can be calculated as Net Income + Depreciation since depreciation is a non-cash expense. Here, it's £198 (Net Income) + £145 (Depreciation) = £343. However, the correct answer is not listed, indicating a possible mistake in the calculation or the options provided. Based on the given options, the closest to the correct calculation is option D) £383, but this appears to be an error in the question or answer choices.

Your ﬁRm Has Net Income of £198 on Total Sales