Question: Module For operating cash flow I used net income + depreciation but my professor states that is the wrong answer. Is there another way to
| Module |
For operating cash flow I used net income + depreciation but my professor states that is the wrong answer. Is there another way to calculate operating cost? If so can you please show me and explain? Thank you
| Sales | 1,100,000 | 1,100,000 | |
| Operating costs (excluding depreciation) | 1100000.000 | 0.70 | 770,000.00 |
| EBITDA | 1100000.000 | 770,000 | 330,000.000 |
| Depreciation | 205,000 | 0.15 | 30,750.00 |
| EBIT | 330,000 | 30,750 | 299,250 |
| Interest Expense | 100,000 | ||
| EBT | 299,250 | 100,000 | 199,250 |
| Taxes*** | 60957.5 | 60,958 | |
| Net Income | 199,250 | 60,958 | 138,292 |
| Common Dividends | 110634 | 11,064 | |
| Addition to Retained Earnings | 138292.5 | 11,063 | 127,229 |
| Operating Cash Flow= | 138,292 | 30,750 | 169,042 |
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