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Last year, BrightCo Industries reported its net income as $800,000. A review of its income statement shows that BrightCo's operating expenses (fixed and variable), excluding depreciation and amortization, were $1,800,000; its depreciation and amortization expense was $400,000; and its tax rate was 30%. BrightCo has no debt, meaning the firm is financed with stock only. a. What were BrightCo's sales revenues last year? b. What was BrightCo's net cash flow last year? c. What was BrightCo's operating cash flow last year?

Last year, BrightCo Industries reported its net income as $800,000. A review of its income statement shows that BrightCo's operating expenses (fixed and variable), excluding depreciation and amortization, were $1,800,000; its depreciation and amortization expense was $400,000; and its tax rate was 30%. BrightCo has no debt, meaning the firm is financed with stock only. a. What were BrightCo's sales revenues last year? b. What was BrightCo's net cash flow last year? c. What was BrightCo's operating cash flow last year?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Last year, BrightCo Industries reported its net income as $800,000. A review of its income statement shows that BrightCo's operating expenses (fixed and variable), excluding depreciation and amortization, were $1,800,000; its depreciation and amortization expense was $400,000; and its tax rate was 30%. BrightCo has no debt, meaning the firm is financed with stock only. a. What were BrightCo's sales revenues last year? b. What was BrightCo's net cash flow last year? c. What was BrightCo's operating cash flow last year?
Transcribed Image Text:Last year, BrightCo Industries reported its net income as $800,000. A review of its income statement shows that BrightCo's operating expenses (fixed and variable), excluding depreciation and amortization, were $1,800,000; its depreciation and amortization expense was $400,000; and its tax rate was 30%. BrightCo has no debt, meaning the firm is financed with stock only. a. What were BrightCo's sales revenues last year? b. What was BrightCo's net cash flow last year? c. What was BrightCo's operating cash flow last year?
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