Calculate Operating Cash Flow for Amalgamated Industries

What is the operating cash flow of Amalgamated Industries?

Amalgamated Industries has Sales of 1,000, COGS of 275, Administrative Expenses of 325 , and Depreciation of 325. If Interest Expense is 25, and Taxes are 25, what is their Operating Cash Flow?

Operating Cash Flow Calculation:

The operating cash flow of Amalgamated Industries can be calculated by subtracting the operating expenses from the net sales. Let's break it down:

First, we need to calculate the total operating expenses by adding up the COGS, Administrative Expenses, and Depreciation:

COGS: $275

Administrative Expenses: $325

Depreciation: $325

Total Operating Expenses = $275 + $325 + $325 = $925

Next, we find the net sales which is equal to the total sales since there are no deductions or discounts:

Net Sales = $1,000

Now, we can calculate the operating cash flow by subtracting the total operating expenses from the net sales:

Operating Cash Flow = Net Sales - Total Operating Expenses

Operating Cash Flow = $1,000 - $925

Operating Cash Flow = $75

Therefore, the operating cash flow of Amalgamated Industries is $75.