What is the operating cash flow

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Reference no: EM131354450

1. A firm has revenue of $50,000, the cost of goods sold is $23,000, other expenses (selling and administration) are $14,000 and depreciation is $5,000. The firm s tax rate is 33%. What is the operating cash flow?

a. $ 5,360

b. $ 8,000

c. $ 10,360

d. $ 13,000

e. None of the above

2. How much more is a perpetuity of $1,000 worth than an annuity of the same amount for 20 years? Assume a 10% interest rate and cash flows at end of period. (round to the nearest cent)

a. $ 297.29

b. $1,486.44

c. $1,635.08

d. $2,000.00

e. None of the above

Reference no: EM131354450

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