Use the following information to answer this question. Net sales Less: Cost of goods sold Less: Depreciation $9,300 7,440 310 Earnings before interest and taxes $1,550 Less: Interest paid Taxable income Less: Taxes 89 $1,461 438 Net income Dividends What is the cash flow to creditors? a. $1,053 million $1,023 $773 b. $1,860 million c. $359 million d. $181 million e. $359 million
Use the following information to answer this question. Net sales Less: Cost of goods sold Less: Depreciation $9,300 7,440 310 Earnings before interest and taxes $1,550 Less: Interest paid Taxable income Less: Taxes 89 $1,461 438 Net income Dividends What is the cash flow to creditors? a. $1,053 million $1,023 $773 b. $1,860 million c. $359 million d. $181 million e. $359 million
Fundamentals of Financial Management (MindTap Course List)
15th Edition
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Eugene F. Brigham, Joel F. Houston
Chapter4: Analysis Of Financial Statements
Section: Chapter Questions
Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...
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Transcribed Image Text:Use the following information to answer this question.
Net sales
Less: Cost of goods sold
Less: Depreciation
$9,300
7,440
310
Earnings before interest and taxes $1,550
Less: Interest paid
Taxable income
Less: Taxes
89
$1,461
438
Net income
Dividends
What is the cash flow to creditors?
a. $1,053 million
$1,023
$773
b. $1,860 million
c. $359 million
d. $181 million
e. $359 million
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