The Pharoah Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.416 million, cost of goods sold of $815,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.) Cash flow from operating activity %24

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The Pharoah Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017:
sales of $1.416 million, cost of goods sold of $815,000, depreciation expenses of $175,000, and interest expenses of $89,575.
Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round
answer to 2 decimal places, e.g. 15.25.)
Cash flow from operating activity
%24
Transcribed Image Text:The Pharoah Company has disclosed the following financial information in its annual reports for the period ending March 31, 2017: sales of $1.416 million, cost of goods sold of $815,000, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. Compute the cash flows to investors from operating activity. (Round answer to 2 decimal places, e.g. 15.25.) Cash flow from operating activity %24
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