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Bi-Lo Traders is considering a project that will produce sales of $40,200 and have costs of $23,300. Taxes will be $4,100 and the depreciation expense will be $2,350. An initial cash outlay of $1,900 is required for net working capital. What is the project's operating cash flow

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hyderali230

Answer:

$10,900

Explanation:

Cash Flow from operating activities cash generated from to day to day activities of the business. All the cash flows needed to operate the business smoothly.

Operating Cash flow = Net Income + Non cash Expenses - Oulay in Working capital

Operating Cash flow = $10,450 + $2,350 - $1,900 = $10,900

Net Income

Sales              $40,200

Costs             ($23,300)

Gross Income$16,900

Depreciation ($2,350)

Tax                 ($4,100)

Net Income    $10,450

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