An Example Cash Flows for Dole Cola

This extended example covers the various cash flow calculations discussed in the chapter. It also illustrates a few variations that may arise.

Operating Cash Flow During the year, Dole Cola, Inc., had sales and cost of goods sold of $600 and $300, respectively. Depreciation was $150 and interest paid was $30. Taxes were calculated at a straight 34 percent. Dividends were $30. (All figures are in millions of dollars.) What was operating cash flow for Dole? Why is this different from net income?

The easiest thing to do here is to go ahead and create an income statement. We can then pick up the numbers we need. Dole Cola's income statement is given here:

PART ONE Overview of Corporate Finance

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