1. Daniel’s Market has sales of $36,000 costs of $28,000, depreciation expense of $3,000 and interest expense of $1,500. If the tax rate is 30 percent, what is the operating cash flow, OCF?
2. Andersen’s Nursery has sales of $318,400, costs of $199,400, depreciation expense of $28,600, interest expense of $1,100, and a tax rate of 30 percent. The firm paid out $16,500 in dividends. What is the addition to retained earnings?