EBT: $180 million

Interest Expense: $20 million

Depreciation: $30 million

Taxes Rate: 35%

1. What is the Operating Cash Flow of the above firm?

A 93

B 117

C 147

D 167

2. The net working capital of the firm #2 is 120 million, and Current Ratio is 2.5. Additionally, the value of the merchandise you have in the storage now is equivalent to the 75% amount of money that you are going to pay the suppliers next month.

How much money are you going to collect from your customers? Calculate the Operating Cash Flow of the above firm.

A 60

B 80

C 120

D 140