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Calculate the cash flow generated by Cash Cow Corporation. Sales $400,000 COGS (120,000) Gross profit $280,000 Depreciation (40,000) Pretax income $240,000 Taxes at 30% (72,000)

Calculate the cash flow generated by Cash Cow Corporation.

Sales

$400,000

COGS

(120,000)

Gross profit

$280,000

Depreciation

(40,000)

Pretax income

$240,000

Taxes at 30%

(72,000)

Net income

$168,000

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