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Isaac Muhoro
on Dec 09, 2024

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Le Place has sales of $439,000, depreciation of $32,000, and net working capital of $56,001. The firm has a tax rate of 34% and a profit margin of 6%. The firm has no interest expense. What is the amount of the operating cash flow?

A) $49,384
B) $52,616
C) $54,980
D) $58,340
E) $114,340

Operating Cash Flow

A financial metric that indicates the amount of money generated by a company's business operations after accounting for operating expenses.

Net Working Capital

A measure of a company's short-term financial health and liquidity, calculated as current assets minus current liabilities.

Profit Margin

A financial metric expressing the ratio of a company's net income to its sales, demonstrating the percentage of revenue that exceeds the cost of goods sold.

  • Assess the cash flows arising from operational activities, taking into account tax effects, depreciation, and changes in net working capital.
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JA
Joséphine AlamerceryDec 15, 2024
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