View the step-by-step solution to:


The Windom Co. has sales of $845,960, costs of $578,402, interest expense of $42,750, and a marginal tax rate of

35%. The company also has $1,299,998 in fixed assets that are being depreciated in a 15% CCA class (you may assume that the ½ year rule has been applied to all of the assets in the pool in the past). What is the operating cash flow for the current year? answer is 257125

it seems using tax shielding, i try the numeric way to get that number,(845960-578402)*(1-0.35)+(1299998*0.15)*0.35+42750*0.35, but i don't know why

Top Answer

Answer Operating cash... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question