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A company reports net sales of $2,500 million. Assume that there were no non-cash sales. Operating costs (excluding depreciation & amortization) were 65% of its

A company reports net sales of $2,500 million. Assume that there were no non-cash sales.

  • Operating costs (excluding depreciation & amortization) were 65% of its total revenues.
  • Depreciation & Amortization charges were 5% of total sales.
  • Interest charges were 15% of EBIT with a tax rate of 40%.

The companys current cash flow is?

a. $382 million

b. $507 million

c. $253 million

d. $637 million

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