Calculate the operating cash flow for the year

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Reference no: EM132033447

Tubby Toys estimates that its new line of rubber ducks will generate sales of $6.30 million, operating costs of $3.30 million, and a depreciation expense of $.30 million. Assume the tax rate is 30%.

a. Calculate the operating cash flow for the year by using all three methods: (a) adjusted accounting profits; (b) cash inflow/cash outflow analysis; and (c) the depreciation tax shield approach. (Enter your answers in millions rounded to 2 decimal places.)

Method Cash Flow

Adjusted accounting profits $ million

Cash inflow/cash outflow analysis million

Depreciation tax shield approach million

b. Are the above answers equal?

Yes

Reference no: EM132033447

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