Question: How much operating cash flow (OCF) does a company generate if its gross profit is R700 000, its operating expenses are R330 000, depreciation is

How much operating cash flow (OCF) does a company generate if its gross profit is R700 000, its operating expenses are R330 000, depreciation is R100 000, and the tax rate is 28%?

Step by Step Solution

★★★★★

3.36 Rating (149 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate operating cash flow OCF we use the following formula OCF Net income ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Dana's Ribbon World makes award rosettes. Following is information about the company: Variable cost per rosette Sales price per rosette Total fixed costs per month Required: $ 2.00 5.00 1500.00 1....

On January 1, 2021, Entity A Company acquired all the assets and assumed all the liabilities of Entity B Company and merged Entity B into Entity A. In exchange for the net assets of Entity B, Entity...

The estimated taxable income for the year ended 31 December 2021 is R8 425 000. What is the 1st provisional payment amount?

Bailey Ltd.vs. Snoopy Ltd. a) using the information above calculate ratios for each company to test their profitability, liquidity, b) comment on each companys profitability, liquidity, solvency &...

a. (1) On what financial goal does Stanley seem to be focusing? Is it the correct goal? Why or why not? (2) Could a potential agency problem exist in this firm? Explain. b. Calculate the firm's...

Hi, Lengthy assignment - questions corporate finance. Significant work required. Please provide quote. Regards BFA728 assignment RWC2016 UNIVERSITY OF TASMANIA Tasmanian School of Business and...

Hello, I am trying to compute NPV, IRR, Payback Period, Discount Rate, Terminal Value. I already have computed some related information, but I need further assistance on how to do above mentioned....

* Data Table Finding operating and free cash flows Consider the balance sheets and selected data from the Inca a. Calculate the firm's net operating profit after taxes (NOPAT) for the year ended...

If you can especially solve the 5th and the 6th questions with the interpretions. I have solved first 4 questions. 0.95 200 000 The credit manager at Bank of New York has just received the income...

Please help me in answering question 1 and 2 of assignment 1. FIN4801 2016 APPENDIX A: ASSIGNMENTS FOR 2016 Note: All calculations must be shown clearly ASSIGNMENT 01 UNIQUE NUMBER: 891054 [50marks]...

Irma White, a churchgoing woman in her late forties, was employed at a Monsanto refinery. While working in the canning department, she and three other employees were told to transfer a corrosive and...

5) Find the equation of the line of intersection of the planes P: 2x+3y-z=10 and P: 4x-2y+z=3. (8 pts) A boat is traveling in the water at 25 mph in a direction of N35 E (that is, 35 east of north)....

Explain the essential components of an effective action plan to improve workforce efficiency. Illustrate your answer using a military-relevant scenario. APA standards and use references

A large crate with mass m rests on a horizontal floor. The coefficients of friction between the crate and the floor are IL, and k A woman pushes downward at an angle (J below the horizontal on the...

The assembly department has the following production and cost data for the current month. Materials are entered at the beginning of the process. The ending work in process units are 70% complete as...

(a) Juan Marichal believes that the analysis of financial statements is directed at two characteristics of a company: liquidity and profitability. Is Juan correct? Explain. (b) Are short-term...

The Town of McHenry has $6,000,000 in general obligation bonds outstanding and maintains a single debt service fund for all debt service transactions. On July 1, 2012, a current refunding took place...

A man wishes to set aside some money for his daughter's college education. His goal is to have a bank savings account containing an amount equivalent to $20,000 with today's purchasing power of the...

What specific environmental problems was Cainiao trying to solve through its Smart Green Logistics strategy, and why were these important for its long-term operations?

Nilsson Company closes its books on 31 December each year. During the past year they have taken a three-year lease on a computer web server to support the development of their e-business activities....

Mr. Schultz, the managing partner of an accounting firm, is concerned by some specific rules of revenue recognition adopted by some of his clients. The following list contains some of the rules he...

Below are excerpts from Notes to consolidated financial statements of four companies reporting movements in provisions. Stora Enso (Finland IFRS Source: Annual report 2011 Production of paper)...

12. How are neuropeptides special compared to other transmitterspg99

11. What are second messengers, and which type of synapse relies on thempg99

7. What does a highly active brain area do to increase its blood supplypg99