Corsair, Inc., has sales of $37,640, costs of $11,670, depreciation expense of $

ID: 2618250 • Letter: C

Question

Corsair, Inc., has sales of $37,640, costs of $11,670, depreciation expense of $2,460, and interest expense of $1,960. If the tax rate is 35 percent, what is the operating cash flow, or OCF? Download the linked spreadsheet template and use it for your answer. Once complete, upload the template to this question. Don't forget to show your work! Input area Sales Costs Depreciation Expense nterest Expense $ 37,640 11,670 2,460 1,960 Tax rate 35% Output area Income Statement FE Costs Depreciation expense EBIT Interest expense EBT Taxes (35% Net income Operating cash flow

Explanation / Answer

Operating Cash flow (OCF) = EBIT + Depreciation – Taxes

37640

- Cost

11670

- Depreciation

2460

EBIT

23510

-Interest

1960

EBT

21550

-Tax @35%

7542.50

Net Income

14007.50