ch 2. If Earnings Before Interest and Taxes (EBIT) is \( \$ 93,080 \), calculate Operating Cash Flow if Sales is \( \$ 350,000 \) Cost of Goods Sold (COCS) is \$140,000 Fixed costs is \( \$ 43,000 \) Selling, Ceneral, Administrative Expenses (SCA) are \$28,000 Depreciation is \( \$ 46,000 \) Interest Expense is \( \$ 18,000 \) Tax rate is \( 40 \% \) \( \$ 59,000 \) \$120,000 \( \$ 109,000 \) \$75,000

To calculate the Operating Cash Flow (OCF), we can use the formula: \[ OCF = EBIT + Depreciation - Taxes \] First, we need to determine the taxes based on EBIT. The tax can be calculated as: \[ \text{Taxes} = EBIT \times \text{Tax Rate} = 93,080 \times 0.40 = 37,232 \] Now, plug in the values: \[ OCF = 93,080 + 46,000 - 37,232 \] \[ OCF = 101,848 \] Thus, the Operating Cash Flow is \( \$101,848 \). However, please note that this does not match the provided options. The closest option is not among the available choices. It's always good practice to recheck calculations and ensure that all inputs are correctly considered, as small errors can lead to big differences in financial analysis!