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La Place: Amount of the Operating Cash Flow

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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 percent and a profit margin of 6 percent. The firm has no interest expense. What is the amount of the operating cash flow?

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Solution Summary

This solution calculates the operating cash flow of La Place based on sale, depreciation, net working capital, tax rate, and profit margin.

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