Answer:
operating cash flow deviate from net income=50,000
Working notes for the above answer is as under
We have been given that,
sales of $250,000,
depreciation expense of $50,000,
taxable income of $50,000, and
an average tax rate of 18%.
Here we need to Net income
we find Net income as under
Net income
=Taxable income-tax
=50,000*18%(150,000)
=50,000-9000
=$ 41,000
Now we calculate OCF(operating Cash Flow)
OCF
=(Taxable income-tax)+depreciation
=(50,000)*(1-.18) + 50,000
= 91,000
Now find operating cash flow deviation from net income
=OCF -Net Income
=91,000-41,000
=50,000