Calculate Operating Cash Flow for Amalgamated Industries
What is the operating cash flow of Amalgamated Industries?
Amalgamated Industries has Sales of 1,000, COGS of 275, Administrative Expenses of 325 , and Depreciation of 325. If Interest Expense is 25, and Taxes are 25, what is their Operating Cash Flow?
Operating Cash Flow Calculation:
The operating cash flow of Amalgamated Industries can be calculated by subtracting the operating expenses from the net sales. Let's break it down:
First, we need to calculate the total operating expenses by adding up the COGS, Administrative Expenses, and Depreciation:
COGS: $275
Administrative Expenses: $325
Depreciation: $325
Total Operating Expenses = $275 + $325 + $325 = $925
Next, we find the net sales which is equal to the total sales since there are no deductions or discounts:
Net Sales = $1,000
Now, we can calculate the operating cash flow by subtracting the total operating expenses from the net sales:
Operating Cash Flow = Net Sales - Total Operating Expenses
Operating Cash Flow = $1,000 - $925
Operating Cash Flow = $75
Therefore, the operating cash flow of Amalgamated Industries is $75.