Parker Ltd. has a gross profit of $850,000 and $280,000 in depreciation expenses. Selling and administrative expenses total $150,000. The tax rate is 30%. Compute the cash flow for Parker Ltd. a. $574,000 b. $129,000 c. $513,000 d. $508,000
Parker Ltd. has a gross profit of $850,000 and $280,000 in depreciation expenses. Selling and administrative expenses total $150,000. The tax rate is 30%. Compute the cash flow for Parker Ltd. a. $574,000 b. $129,000 c. $513,000 d. $508,000
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 4P: Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had...
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Transcribed Image Text:Parker Ltd. has a gross profit of $850,000 and
$280,000 in depreciation expenses. Selling and
administrative expenses total $150,000. The tax rate
is 30%.
Compute the cash flow for Parker Ltd.
a. $574,000
b. $129,000
c. $513,000
d. $508,000
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