Uripidy Company has a gross profit of $880,000.00 and $360,000.00 in depreciatio

Question

Uripidy Company has a gross profit of $880,000.00 and $360,000.00 in depreciation expense. Selling and administrative expense is $120,000.00. Given that the tax rate is 40 percent, compute the cash flow (the cash flow from operations) for Uripidy Co. show calculations/formulas Uripidy Company has a gross profit of $880,000.00 and $360,000.00 in depreciation expense. Selling and administrative expense is $120,000.00. Given that the tax rate is 40 percent, compute the cash flow (the cash flow from operations) for Uripidy Co. show calculations/formulas

Explanation / Answer

$400,000
Thus, the cash flow from operations is $600,000 Gross Profit $880,000 Less :Depreciation $360,000 Less :Selling and administrative expenses $120,000 Profit Before taxes $400,000 Less :Taxes (40%) $160,000 Profit after taxes $240,000 Add: Depreciation $360,000 Cash Flow from operations $600,000

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