You have just landed an internship in the CFO's office of Hawkesworth Inc. Your first task is to estimate the Year 1 cash flow for a project with the following data. What is the Year 1 cash flow?
Sales revenues$13,000
Depreciation$4,000
Other operating costs$6,000
Tax rate25.0%
A. $6,250
B. $6,406
C. $6,566
D. $6,731
E. $6,899
Answer: A
You might also like to view...
When bonds are converted to stock, no gain or loss is recognized
Indicate whether the statement is true or false
Which of the following statements is False
a. Intellectual capital consists of intangible assets such as knowledge, skills and information. b. The chief financial officer of an organization is considered to be a member of staff personnel. c. Responsibility is the obligation of an individual to accomplish a task or to achieve an objective. d. Authority refers to the right of an individual to use resources to accomplish a task to achieve an objective.
A times-interest-earned (TIE) ratio that is less than 1 suggests that a firm _____.
A. is using a low proportion of debt financing in its capital structure B. has a low probability of defaulting on its loans C. might not be able to meet its annual interest obligations on its debt D. is financed with equity only E. has an extremely low debt/assets ratio
Conditions are promise modifiers
Indicate whether the statement is true or false