Ann's Custom Catering Has Sales of $214,000, Depreciation of $9,000

question 10

Multiple Choice

Ann's Custom Catering has sales of $214,000, depreciation of $9,000, and net working capital of $16,000. The firm has a tax rate of 34% and a profit margin of 7%. The firm has no interest expense.
What is the amount of the operating cash flow?

• A) $7,980
• B) $23,980
• C) $30,350
• D) $39,980
• E) $53,700

---

Definitions:

Productivity Improvements

Involves strategies and actions taken to increase the efficiency and effectiveness of processes, leading to higher outputs with the same or reduced input levels.

Technological Change

The process by which new technologies and innovations are developed, leading to changes in productivity, efficiency, and societal norms.

Functional Silos Problem

Issues that arise when different departments or groups within an organization do not communicate effectively, leading to inefficiencies and reduced synergy.

Functional Units

Departments or divisions within an organization, each specializing in a particular area of operation, such as marketing, finance, or human resources.