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I am not understanding how to obtain the OCF. I know that you have to add the depreciation expense and subtract the tax, but I am very confused. I know that you must divide the current assets by the current liabilities but when I do it, it doesn't work. Please help.

Hammett, Inc., has sales of $19,720, costs of $9,310, depreciation expense of $1,980, and interest expense of $1,470. Assume the tax rate is 40 percent.

What is the operating cash flow?

Hammett, Inc., has net working capital of $1,090, current liabilities of $6,750, and inventory of $1,160.

What is the current ratio? Round your answer to 2 decimal places (e.g., 3.16).
What is the quick ratio? Round your answer to 2 decimal places (e.g., 3.16).

 

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