Ch 02: Assignment - Financial Statements, Cash Flow, and Taxes How much cash does the firm actually have? You are the CFO of ABC Corp. You are looking to hire a financial analyst, and you've given an assignment to two short-listed candidates the following information to the job applicants: The company reported net sales of $2,500 million. Assume that there were no noncash sales. Operating costs (excluding depreciation and amortization) were 65% of the company's total revenues. Depreciation and amortization charges were 5% of total sales. Interest charges were 15% of earnings before interest and taxes (EBIT) with a tax rate of 40%. You've asked the candidates to give you a number that best represents the cash flow situation of the company. Finn submits a report stating that the firm has $508 million in cash available. Arty submits a report stating that the firm has $382.5 million in cash. Based on the information given to them, which applicant has provided a better estimate of the company's current cash flows? Check all that Finn Arty pust 5 18 O 94F