Computing cash flow from operations


Q1) Sherly's Shipping had sales last year of= $10,000. Cost of goods sold was $6,500, general and administrative expenses were= $1,000, interest expenses were $500, and depreciation was $1,00. Firm's tax rate is 35%.

a. What are earnings before interest and taxes?

b. Determine net income?

c. Compute cash flow from operations?

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Accounting Basics: Computing cash flow from operations
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