2 POINT Mona Equipment Inc. had $18.20 million in saleslast year. The cost of goods sold was $9.20million, depreciation expense was $2.80 million,interest payment on outstanding debt was $1.80million, and the firm's tax rate was 23%.A. What was the firm's net income?B. What was the firm's cash flow?

Explanation of Sales Revenue:Sales revenue refers to the total amount of money generated by a…

Answered: Mona Equipment Inc. had $18.20 million…

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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Mona Equipment Inc. had $18.20 million in sales last year. The cost of goods sold was $9.20 million, depreciation expense was $2.80 million, interest payment on outstanding debt was $1.80 million, and the firm's tax rate was 23%. A. What was the firm's net income? B. What was the firm's cash flow?