1) The following year, Chevelle, Inc. has sales of $49,500, costs of $18,400, depreciation expense of $1,900, and interest expense of $1,400. If the tax rate is increased to 40%, what is the operating cash flow, or OCF?
2) The third year, Chevelle, Inc. has trouble. Sales drop to $20,500, with costs of $15,500, depreciation expense of $1,900, and interest expense of $1,100. If the tax rate is remains 40%, what is the operating cash flow, or OCF?