Question
Minbari, Inc. shows the following information on its Y2019 income statement: Sales = $480,000; Cost of goods sold = $200,000; Depreciation expense = $30,000; Interest
Minbari, Inc. shows the following information on its Y2019 income statement:
Sales = $480,000; Cost of goods sold = $200,000; Depreciation expense = $30,000; Interest expense = $50,000; Tax rate = 20%; Dividends = $30,000. The firm issued $20,000 in new equity, and used the amount to redeem $20,000 in outstanding long-term debt.
3. What is the Y2019 net income of Minbari, Inc.?
- $160,000.
- $170,000.
- $180,000.
- $190,000.
4. What is the Y2019 operating cash flow (OCF) of Minbari, Inc.?
- $230,000.
- $240,000.
- $250,000.
- $260,000.
5. What is the Y2019 cash flow to creditors of Minbari, Inc.?
- -$30,000.
- -$20,000.
- +$30,000.
- +$70,000.
6. What is the Y2019 cash flow to stockholders of Minbari, Inc.?
- -$50,000.
- -$10,000.
- +$10,000.
- +$50,000.
7. What is the Y2019 cash flow from assets of Minbari, Inc.?
- -$80,000.
- -$60,000.
- +$60,000.
- +$80,000.
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