Answer:
$519,080
Explanation:
The operating cash flow is shown below:
= Earning before interest and taxes + depreciation expense - income tax expense
where,
Earning before interest and taxes = Sales - cost of goods sold - operating expenses
= $2,522,000 - $1,838,000 - $326,000
= $358,000
The income tax expense would be
= (Sales - costs of goods sold - operation expenses) × tax rate
= ($2,522,000 - $1,838,000 - $326,000) × 24%
= $85,920
So, the operating cash flow would be
=$358,000 + $247,000 - $85,920
= $519,080
Note: It is assumed that depreciation expense is included in operating expenses.
