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Suppose the CFO of ABC Corp. is looking to hire a financial analyst and gives the following information to two job applicants: The company reported

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Suppose the CFO of ABC Corp. is looking to hire a financial analyst and gives the following information to two job applicants: The company reported net sales of $2,187,500. There are no nancash sales. . Its operating costs (excluding depreciation and amortization) are 65% of the company's total revenues . The depreciation and amortization expenses are 5% of total sales. Its interest charges are 15% of earnings before interest and taxes (EBIT), and it pays a tax rate of 40% Net cash flow is the money that the business is left with after paying its operating expenses, interest expense, and taxes. However, because some revenues and expenses do not involve the making of cash payments, the firm's net income may differ from the company's true net cash flow situation. Kate submits a report stating that the firm has $444,062 in available net cash flow, while Hubert's report states that the firm has $334,687 in net cash flow. Based on the information given, which applicant has provided a better estimate of the company's current cash flows? Kate Hubert

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