![Ridiculousness, Inc., has sales of $48,000, costs of $21,200, depreciation expense of $1,900, and
interest expense of $1,200.
Ridiculousness, Inc., has sales of $48,000, costs of $21,200, depreciation expense of $1,900, and
interest expense of $1,200.
Solution
SALES REPORTED = $48000
LESS COST =($21200)
LESS DEPRICIATION EXPENSES = ($1900)
LESS INTEREST EXPENSES =($1200)
NET INCOME = $23700
LESS INCOME TAX @ 35% =($8295)
INCOME AFTER TAX = $15405
ADD DEPRICIATION = $1900 [AS DEPRICIATION IS A NON CASH ITEM]
OPERATING CASH FLOW = $17305](https://image.slidesharecdn.com/ridiculousness-inc-hassalesof48-000-costsof21-200-deprecia-230126010349-b3ebe413/85/Ridiculousness-Inc-has-sales-of-48-000-costs-of-21-200-deprecia-docx-1-320.jpg)
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Ridiculousness- Inc-- has sales of $48-000- costs of $21-200- deprecia.docx
- 1. Ridiculousness, Inc., has sales of $48,000, costs of $21,200, depreciation expense of $1,900, and interest expense of $1,200. Ridiculousness, Inc., has sales of $48,000, costs of $21,200, depreciation expense of $1,900, and interest expense of $1,200. Solution SALES REPORTED = $48000 LESS COST =($21200) LESS DEPRICIATION EXPENSES = ($1900) LESS INTEREST EXPENSES =($1200) NET INCOME = $23700 LESS INCOME TAX @ 35% =($8295) INCOME AFTER TAX = $15405 ADD DEPRICIATION = $1900 [AS DEPRICIATION IS A NON CASH ITEM] OPERATING CASH FLOW = $17305