Use these financial statements to answer questions 1 through 6. Balance Sheet 20

Question

Use these financial statements to answer questions 1 through 6.
Balance Sheet
2007 2008 2007 2008
Cash $ 1,700 $ 1,600 Accounts payable $13,800 $ 12,900
Accounts receivable 14,300 17,400 Long-term debt 47,500 48,600
Inventory 22,500 23,700 Common stock 17,000 22,000
Net fixed assets 82,900 81,600 Retained earnings 43,100 40,800
Total assets $121,400 $124,300 Total liabilities and equity $121,400 $124,300
Income Statement
Net Sales $163,700
Costs 108,200
Depreciation 14,100
EBIT 41,400
Interest 3,800
Taxable income 37,600
Taxes 13,200
Net Income $ 24,400
1. What is the amount of the operating cash flow?
a. $24,400 b. $30,500 c. $38,500 d. $42,300

Explanation / Answer

    Operating cash flow = EBIT + Interest - Taxes

    Operating Cash flow = $41,400 + $14,100 $13,200 = $42,300

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