Question
Given the following income statement data for a local business: Net sales = $16,500Cost of goods sold = $10,350 Depreciation = $1120Interest expense = $900
Given the following income statement data for a local business:
Net sales = $16,500Cost of goods sold = $10,350
Depreciation = $1120Interest expense = $900
Tax rate is 34%
a.Calculate net income
b.Calculate operating cash flow
c.Is this company able to cope with a short-term downturn in profitability? Explain your answer.
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An Introduction to Investment Banks, Hedge Funds, and Private Equity
Authors: David P. Stowell
1st edition
978-0123745033, 0123745039, 978-9380931074
