Pennywise, Inc. had a great year. Sales reached an all-time high of $25 million, with a gross margin of $8.5 million. Depreciation was recorded at $850,000. Earnings before interest and taxes were $3 million, interest was $1.5 million, and total taxes were $600,000. What was the firm's operating cash flow (OCF)?
Pennywise, Inc. had a great year. Sales reached an all-time high of $25 million, with a gross margin of $8.5 million. Depreciation was recorded at $850,000. Earnings before interest and taxes were $3 million, interest was $1.5 million, and total taxes were $600,000. What was the firm's operating cash flow (OCF)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Pennywise, Inc. had a great year. Sales reached an all-time high
of $25 million, with a gross margin of $8.5 million. Depreciation
was recorded at $850,000. Earnings before interest and taxes
were $3 million, interest was $1.5 million, and total taxes were
$600,000. What was the firm's operating cash flow (OCF)?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8c5defad-5610-417c-af2d-1677eaa296b6%2F4f011eb6-eec0-42f1-b5b4-2122fdb3484d%2Fbeu5o8i_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Pennywise, Inc. had a great year. Sales reached an all-time high
of $25 million, with a gross margin of $8.5 million. Depreciation
was recorded at $850,000. Earnings before interest and taxes
were $3 million, interest was $1.5 million, and total taxes were
$600,000. What was the firm's operating cash flow (OCF)?
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