1. Peter’s Boats has sales of $760,000 and a profit margin of 5%. The annual depreciation expense is $80,000. What is the amount of the operating cash flow if the company has no interest expense?
$34,000
$86,400
$118,000
$120,400
$123,900
2. Companies that consistently pay out higher than average cash dividends are classified as ___________ stocks.
1. income
2. growth
3. defensive
4. speculative