Question
1) The Blossom Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.452 million,
1) The Blossom Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.452 million, cost of goods sold of $801,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.)
2) Ivanhoe Corporation reported EBITDA of $7,300,425 and net income of $3,329,150 for the fiscal year ended December 31, 2017. During the same period, the company had $1,155,380 in interest expense, $1,023,287 in depreciation and amortization expense, and an average corporate tax rate of 35 percent. What was the cash flow to investors from operating activity during 2017?
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