financial statements14

Financial - Net cash flow i Answer d An analyst has collected Gilligan Grocers the following information Diff M N regarding Earnings before

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Net cash flow Answer: d Diff: M N i . An analyst has collected the following information regarding Gilligan Grocers: Earnings before interest and taxes (EBIT) = $700 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) = $850 million. Interest expense = $200 million. The corporate tax rate is 40 percent. Depreciation is the company’s only non-cash expense or revenue. What is the company’s net cash flow? a. $850 million b. $650 million c. $570 million d. $450 million e. $500 million Operating and net cash flows Answer: a Diff: M ii . Brooks Sisters’ operating income (EBIT) is $500,000. The company’s tax rate is 40 percent, and its operating cash flow is $450,000. The company’s interest expense is $100,000. What is the company’s net cash flow? (Assume that depreciation is the only non-cash item in the firm’s financial statements.) a. $ 390,000 b. $ 550,000 c. $ 600,000 d. $ 950,000 e. $1,050,000 EVA Answer: b Diff: M R iii . Casey Motors recently reported the following information:
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This note was uploaded on 08/04/2011 for the course COMM 101 taught by Professor Sy during the Spring '11 term at USC.

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Financial - Net cash flow i Answer d An analyst has collected Gilligan Grocers the following information Diff M N regarding Earnings before

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