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Questions 3-7 refer to the following information. Minbari, Inc. shows the following information on its Y2020 income statement Sales = $580,000; Cost of goods sold

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Questions 3-7 refer to the following information. Minbari, Inc. shows the following information on its Y2020 income statement Sales = $580,000; Cost of goods sold = $200,000; Depreciation expense = $30,000; Interes expense = $50,000; Tax rate 20%; Dividends = $60,000. The firm issued $30,000 in new equity, and used the amount to redeem $30,000 in outstanding long-term debt. 3. What is the Y2020 net income of Minbari, Inc.? a. $220,000. b. $230,000. c. $240,000. d. $250,000. 4. What is the Y2020 operating cash flow (OCF) of Minbari, Inc.? a. $270,000. b. $320,000. c. $370,000. d. $420,000. 5. What is the Y2020 cash flow to creditors of Minbari, Inc.? a. -$20,000. b. +$20,000. c. +$70,000. d. +$80,000

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