8.Calculating OCF. Hammett, Inc., has sales of $34,630, costs of $10,340, depreciation expense of $2,520, and

interest expense of $1,750. If the tax rate is 35 percent, what is the operating cash flow, or OCF?

In calculating Operating Cash Flow (OCF) for Hammett Inc, we will need earnings before interest and cash, Depreciation, and tax information. I will break down the solution in the table below;

First, we need to figure the firms earnings before interest and taxes. They earned $34,630 in sales – costs of $10,340 = $24,290.

Earnings before interest and taxes

$24,290

+ Depreciation

$2,520

– Taxes

$9383.50

     Operating cash flow

 $17,426.50

Can you please check this and verify if it is correct of not? I did the work, just not sure if this is correct

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