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The company reported net sales of $3,750 million. Assume that there were no noncash sales. Operating costs (excluding depreciation and amortization) were 65% of its
The company reported net sales of $3,750 million. Assume that there were no noncash sales. Operating costs (excluding depreciation and amortization) were 65% of its total revenues. Depreciation and amortization charges were 5% of total sales. Interest charges were 15% of EBIT with a tax rate of 40%. Net income is the money that the business is left with after paying operating expenses, interest expense, and taxes. However, because some revenues and expense are not cash transactions, net cash flow indicates the true cash flow situation of the company. The company's current cash flow is: O $573 million O $379 million $761 million $955 million
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