Your firm has the following income statement items: sales of $52,000,00%3; income tax of $1,880,000; operating expenses of $9,000,000; cost of goods sold of $36,000,000; depreciation and amortization of $1,500,000; and interest expense of $800,000. For purposes of determining free cash flow, what is the amount of the firm's after-tax cash flow from operations? O $750,000 O $3,600,000 O $1,008,000 O $5,120,000

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...
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Your firm has the following income statement items: sales of $52,000,000;
income tax of $1,880,000; operating expenses of $9,000,000; cost of goods sold
of $36,000,000; depreciation and amortization of $1,500,000; and interest
expense of $800,000. For purposes of determining free cash flow, what is the
amount of the firm's after-tax cash flow from operations?
O $750,000
O $3,600,000
O $1,008,000
O $5,120,00O
Transcribed Image Text:Your firm has the following income statement items: sales of $52,000,000; income tax of $1,880,000; operating expenses of $9,000,000; cost of goods sold of $36,000,000; depreciation and amortization of $1,500,000; and interest expense of $800,000. For purposes of determining free cash flow, what is the amount of the firm's after-tax cash flow from operations? O $750,000 O $3,600,000 O $1,008,000 O $5,120,00O
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