1. Bob’s Burgers had sales of $650,000 last year with cost of goods sold running 35% of sales and depreciation of $120,000. Their interest expense was $40,000 and operating costs of $180,000. If their tax rate was 40%, what was their Operating Cash Flow? A. $346,000 B. -$17,500 C. $192,500 D. $209,500.
2. Pancake Village had sales of $1.5 million with depreciation of $350,000 and other operating costs that ran 35% of sales. They paid $180,000 in dividends with a tax rate of 40% and interest expense of $280,000. What was their Net Cash Flow? A. $449,000 B. $767,000 C. $557,000 D. $872,000