Question
Minbari, Inc. shows the following information on its Y2010 income statement: Sales = $430,000; Cost of goods sold = $240,000; Depreciation expense = $60,000; Interest
Minbari, Inc. shows the following information on its Y2010 income statement: Sales = $430,000; Cost of goods sold = $240,000; Depreciation expense = $60,000; Interest expense = $30,000; Tax rate = 40%; Dividends = $30,000. In addition, the firm issued $20,000 in new equity, and used the amount to redeem $20,000 in outstanding long-term debt. What is the Y2010 net income of Minbari, Inc.? $60,000. $70,000. $80,000. $90,000. What is the Y2010 operating cash flow (OCF) of Minbari, Inc.? $130,000. $140,000. $150,000. $160,000. What is the Y2010 cash flow to creditors of Minbari, Inc.? -$50,000. -$10,000. $10,000 $50,000 What is the Y2010 cash flow to stockholders of Minbari, Inc? $-50,000 $-10,000 $10,000 $50, 000 What is the Y2010 cash flow from assets of minbari, Inc? -$60,000 -$40,000 $40,000 $60,000
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