Nabors Inc.
|
2005 and 2006 Balance Sheet
|
($ in millions)
|
|
2005
|
2006
|
Cash
|
$310
|
$405
|
Accounts rec
|
2,640
|
3,055
|
Inventory
|
3,275
|
3,850
|
Total
|
$6,225
|
$7,310
|
Net fixed assets
|
10,960
|
10,670
|
Total assets
|
$17,185
|
$17,980
|
|
|
|
Accounts payable
|
$2,720
|
$2,570
|
Notes payable
|
100
|
0
|
Total
|
$2,820
|
$2,570
|
Long term debt
|
7,875
|
8,100
|
Common stock
|
5,000
|
5,250
|
Retained earnings
|
1,490
|
2,060
|
Total liab. & equity
|
$17,185
|
$17,980
|
Nabors Inc.
|
2006 Income Statement
|
($ in millions)
|
Net sales
|
$9,610
|
Less: Cost of goods sold
|
6,310
|
Less: Depreciation
|
1,370
|
Earnings before interest and tax
|
1,930
|
Less: Interest paid
|
630
|
Taxable income
|
$1,300
|
Less: Taxes
|
455
|
Net income
|
$845
|
Determine the operating cash flow for 2006?
[A] $845
[B] $1,930
[C] $2,215
[D] $2,845
[E] $3,060