Question
Balto Moving and Storage, Inc. generates the following income statement for the year. In addition, the company has a net reduction in working capital of
Balto Moving and Storage, Inc. generates the following income statement for the year. In addition, the company has a net reduction in working capital of $2,150 and spends $2,975 on new capital projects.
| Income Statement | |||
| Net sales | $ | 7,500.00 | |
| Cost of goods sold | 1,600.00 | ||
| Depreciation | 750.00 | ||
| EBIT | $ | 5,150.00 | |
| Interest expense | 1,250.00 | ||
| Taxable income | $ | 3,900.00 | |
| Taxes | 1,170.00 | ||
| Net income | $ | 2,730.00 | |
a. What is the companys cash flow from operations? (Round your answer to the nearest dollar.)
b. What is the companys free cash flow? (Round your answer to the nearest dollar.)
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The Next Step Advanced Medical Coding And Auditing
Authors: Carol J. Buck
1st Edition
0323430775, 978-0323430777
