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Capital Spending: NWC Change
Capital Spending: NWC Change
Sales $20,300
COGS $14,500
Depreciation Expense $2,900
Interest Expense $690
Dividends Paid $660
Tax Rate for 2015: 40%
Sales $20,300
COGS $14,500
Depreciation Expense $2,900
EBIT $2,900 To find taxes, multiply pretax income
Interest Expense $690
by tax rate of 40%
Pretax Income $2,210
Taxes $884
Net Income $1326
OCF = $4916
=17,120-15,470+2,900
=4,550
Yes this cash flow number can be negative due to the company investing in assets.