If earnings before interest and taxes ebit is 93000


If Earnings Before Interest and Taxes (EBIT) is $93,000, calculate Operating Cash Flow if 

  • Sales is $350,000
  • Cost of Goods Sold (COGS) is $140,000
  • Fixed costs is $43,000
  • Selling, General, Administrative Expenses (SGA) are $28,000
  • Depreciation is $46,000
  • Interest Expense is $18,000
  • Tax rate is 40%

 The formula for Operating Cash Flow is:

EBIT+Depreciation - Taxes = Operating Cash Flow

(93,000+46,000) - .4(x)

This is how I see the formula in my eyes but I'm not sure what is being taxed. The sales? The EBIT? COGS? 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: If earnings before interest and taxes ebit is 93000
Reference No:- TGS01259043

Expected delivery within 24 Hours