Le Place Has Sales of $439,000,depreciation of $32,000,and Net Working

question 29

Multiple Choice

Le Place has sales of $439,000,depreciation of $32,000,and net working capital of $56,000. The firm has a tax rate of 34% and a profit margin of 6%. The firm has no interest expense. What is the amount of the operating cash flow?

• A) $49,384
• B) $52,616
• C) $54,980
• D) $58,340
• E) $114,340

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Definitions:

Expected Activity

Expected Activity refers to the anticipated level of operation or production based on forecasts or historical data.

Actual Activity

A measure of the real amount of work performed or production completed in a specific period.

Activity-based Costing

A costing methodology that assigns costs to products or services based on the activities required to produce them, aiming to more accurately reflect the consumption of resources.

Manufacturing Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance of equipment, and factory supplies, not directly attributable to specific product units.