Toby's Pizza Has Total Sales of $987,611 and Costs of $724,268

question 155

Multiple Choice

Toby's Pizza has total sales of $987,611 and costs of $724,268. Depreciation is $39,740 and the tax rate is 34 percent. The firm does not have any interest expense. What is the operating cash flow?

• A) $147,577.98
• B) $187,317.98
• C) $191,417.06
• D) $213,008.14
• E) $223,603.00

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Definitions:

Job-Order Costing

An accounting method that assigns costs to specific batches or job orders, making it suitable for companies producing unique products or jobs.

Direct Materials

Direct Materials are raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.

Manufacturing Overhead

All indirect costs associated with the production of goods, such as utilities, maintenance, and supplies not directly traceable to a product.

Manufacturing Overhead

All costs related to the production process that are not direct materials or direct labor are considered indirect expenses.