# BUSN379 DeVry University Operating Cash Flow and Ethical Business Paper

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elna3209

Business Finance

Busn379

## Description

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?

14.

 Calculating Cash Flows. Weiland Co. shows the following information on its 2014 income statement: sales = \$167,000; costs = \$88,600; other expenses = \$4,900; depreciation expense = \$11,600; interest expense = \$8,700; taxes = \$18,620; dividends = \$9,700. In addition, you’re told that the firm issued \$2,900 in new equity during 2014, and redeemed \$4,000 in outstanding long-term debt. a. Calculating Cash Flows. What is the 2014 operating cash flow? b. What is the 2014 cash flow to creditors? c. What is the 2014 cash flow to stockholders? d. If net fixed assets increased by \$23,140 during the year, what was the addition to NWC?

Based on your experience and research, provide an example of an ethical situation faced by a business and discuss your recommendations for the best way for the business to handle the situation. Your submission should be at least 500 words

So, it's the first two questions and then roughly 500 word answer on the ethical situation

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## Explanation & Answer

Hello there,Hope everything is great. As promised, I am back with a final version of your requested work. I am attaching to this message a Word titled "Essentials of Corporate Finance" which contains the 2 problems solved and the discussion.For the problems, I included all the formulas and calculus so you can understand how I reached the final solution. For the discussion, I discussed an ethical dilemma faced by the Dove brand when they released racism and sexism promoting campaign. In total, the discussion has 533 words (as the minimum was 500)Looking forward to hearing from you. If you need any further assistance, don't hesitate to text me.

Busn379

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Essentials of Corporate Finance
[Your Name]
Finance Task
DeVry University
21th May 2019

Busn379

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Essentials of Corporate Finance
Exercise 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?
The Operating Cash Flow = EBIT + Depreciation – Tax

EBIT = Sales – (Expenses/Costs + Depreciation)
EBIT=\$34,630- (\$10,340 + \$2,520)
EBIT= \$21,770

Tax= Tax rate * Income before the Tax
Tax = 35% * \$20,020
Tax = 35/100 * \$20,020
Tax=\$7,007

Profit After Tax (known as PAT) = Income before Tax-Tax
PAT =\$20,020-\$7,007
PAT=\$13,013

Operating Cash Flow = (EBIT + Depreciation – Tax)
Op...

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