The company paid $155,000 in dividends and $220,000 in interest. The addition to retained earnings is $325,000.If sales are $1,600,000 and depreciation is $160,000, what is EBIT? What is OCF? (Use 35% tax rate).
I know EBIT= 1,440,000, but How do I find OCF(operating Cash flow)?
What I got is OCF= EBIT+ Deprecation-Taxes
1,440,000+160,000-220,000= 1,380,000
1,380,000*35%=483,000 is that right?