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During 2014, Five J Builders had sales of $675,000. COGS, G&A and depreciation were $435,000, $85,000 and $125,000 respectively. In addition, the company had interest
During 2014, Five J Builders had sales of $675,000. COGS, G&A and depreciation were $435,000, $85,000 and $125,000 respectively. In addition, the company had interest expense of $70,000 and a tax rate of 35%.
a. What is Five Js net income for 2014?
b. What is the operating cash flow?
c. Why was net income negative, while cash flow was positive?
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International Financial Management
Authors: Jeff Madura
2nd Edition
0314430296, 978-0314430298
