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  • 21-10-2020
  • Business
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The EBIT is $40,000, depreciation is $10,000, and taxes are $6,000. What is the operating cash flow (OCF)

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facundobuzzetti
facundobuzzetti facundobuzzetti
  • 21-10-2020

Answer:

Operating cash flow= $44,000

Explanation:

Giving the following information:

The EBIT is $40,000, depreciation is $10,000, and taxes are $6,000.

To calculate the operating cash flow, we need to use the following formula:

Operating cash flow= EBIT - T + Depreciation

Operating cash flow= 40,000 - 6,000 + 10,000

Operating cash flow= $44,000

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