Question
You are Olivia, a financial analyst who works for an investment bank in downtown Denver, Colorado. You are analyzing the current cash condition of Sukam
You are Olivia, a financial analyst who works for an investment bank in downtown Denver, Colorado.
You are analyzing the current cash condition of Sukam Inc. You have the following information from the companys financial reports:
The company reported net sales of $6,250 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 / NET FLOW______ 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 companys current cash flow is: (Note: Do not round intermediate calculations, but round the final answer to the nearest million.)
A. $1,396 million
B. $1,167 million
C. $1,091 million
D. $1,269 million
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