The 2013 income statement of Southern Products, Inc., showed $2.3 million EBIT, $340,000 depreciation, $800,000 interest expenses, and its tax rate is 34%. If the firm's net capital spending for 2013 was $620,000, and the firm increased its net working capital investment by $70,000, find the firm's 2013 cash flow from assets (CFFA). Do not include the $ sign or comma, and round it to a whole dollar, e.g., 2345 (for $2,345).

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter2: Financial Statements, Cash Flow, And Taxes
Section: Chapter Questions
Problem 12P
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The 2013 income statement of
Southern Products, Inc., showed
$2.3 million EBIT, $340,000
depreciation, $800,000 interest
expenses, and its tax rate is 34%.
If the firm's net capital spending
for 2013 was $620,000, and the
firm increased its net working
capital investment by $70,000,
find the firm's 2013 cash flow from
assets (CFFA). Do not include the
$ sign or comma, and round it to
a whole dollar, e.g., 2345 (for
$2,345).
Transcribed Image Text:The 2013 income statement of Southern Products, Inc., showed $2.3 million EBIT, $340,000 depreciation, $800,000 interest expenses, and its tax rate is 34%. If the firm's net capital spending for 2013 was $620,000, and the firm increased its net working capital investment by $70,000, find the firm's 2013 cash flow from assets (CFFA). Do not include the $ sign or comma, and round it to a whole dollar, e.g., 2345 (for $2,345).
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