Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating
Question:
Tubby Toys estimates that its new line of rubber ducks will generate sales of $7 million, operating costs of $4 million, and a depreciation expense of $1 million. If the tax rate is 35%, what is the firm's operating cash flow? Show that you get the same answer using all three methods to calculate operating cash flow.
Transcribed Image Text:
S 7.00 million Sales Costs Depreciation expense Tax Rate S 4.00 milion S 1.00 million 35.00%
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Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0078034640
7th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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