A debt-free firm has total sales of $22,980, costs of $14,715, and depreciation of $6,045. What is the operating cash flow at a tax rate of 23 percent?

$7,754.4

Explanation:

Given the above information, first we need to calculate profit before tax

Profit before tax = Total sales - Cost of goods sold - depreciation

= $22,980 - $14,715 - $6,045

= $2,220

Profit before tax = $2,220

Tax rate = 23%

Then, we will calculate

Net profit before tax

= Profit before tax × ( 1 - tax rate)

= $2,220 × ( 1 - 23%)

= $1,709.4

Then,

Operating cash flow

= Net profit + depreciation

= $1,709.4 + $6,045

= $7,754.4

answer; i believe the answer is (facework);

month 1 start amount =$3287.90 interest=(3287.90x0.0145/12)3.97 total to pay=$3291.81 paid =$1200 balance =$2,091.87

month 2 starting amount= $2,091.87 interest =$25.28 total to pay =$2117.15 paid =$1200 balance $917.15

month 3 starting amount =$917.15 interest =$11.08 total to pay =$928.23 paid =$928.23 balance =$0 total to pay 1200+1200+928.23 = $3328.23 it will take 3 months to pay a total of $3328.23