Last year Z&B Paints reported its net income as $650,000. A review of its income statement shows that Z&B's operating expenses (fixed and variable), excluding depredation and amortization, were $1,500,000; its depreciation and amortization expense was $300,000; and its tax rate was 35 percent. Z&B has no debt-that is, the firm is financed with stock only. a. What were Z&B's sales revenues last year? b. What was Z&B's net cash flow last year? c. What was Z&B's operating cash flow last year?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Last year Z&B Paints reported its net income as $650,000. A review of its income statement
shows that Z&B's operating expenses (fixed and variable), excluding depredation and
amortization, were $1,500,000; its depreciation and amortization expense was $300,000;
and its tax rate was 35 percent. Z&B has no debt-that is, the firm is financed with stock
only.
a. What were Z&B's sales revenues last year?
b. What was Z&B's net cash flow last year?
c. What was Z&B's operating cash flow last year?
Transcribed Image Text:Last year Z&B Paints reported its net income as $650,000. A review of its income statement shows that Z&B's operating expenses (fixed and variable), excluding depredation and amortization, were $1,500,000; its depreciation and amortization expense was $300,000; and its tax rate was 35 percent. Z&B has no debt-that is, the firm is financed with stock only. a. What were Z&B's sales revenues last year? b. What was Z&B's net cash flow last year? c. What was Z&B's operating cash flow last year?
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