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Homework answers / question archive / Given the following information
Given the following information .1 price per unit = $15, variable cost per unit = $6, the initial cost = $10000, the number of years = 4, the fixed cost = $30000, the .Quantity = 6500 and the Tax = 20% ?find the operating cash flow (*,i6a.; 10)
$23300 $26500 $30000 $5200
| Computation of Operating Cash Flow: | |
| Particulars | Amount |
| Sales (6500*$15) | 97500 |
| Less: Variable Cost (6500*$6) | 39000 |
| Contribution Margin (Sales - Variable Cost) | 58500 |
| Less: Fixed Cost | 30000 |
| Less: Depreciation ($10,000/4) | 2500 |
| Profit before Tax | 26000 |
| Less: Tax @20% | 5200 |
| Profit after Tax | 20800 |
| Add: Depreciation | 2500 |
| Operating Cash Flow | 23300 |
So, the correct option is 1st "$23,300".
