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Simple Cash Flow Calculation

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As assistant to the CFO of Boulder Inc., you must estimate the Year 1 cash flow for a project with the following data. What is the Year 1 cash flow?

Sales revenues $13,000
Depreciation $4,000
Other operating costs $6,000
Tax rate 35.0%

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Solution Summary

The solution computes 1st year cash flow for Boulde Inc's project.

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Sales - 13,000
Less
other operating cost - 6000

Operating Income = 7000 ...

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