An analyst has collected the following information regarding GoNa Grocers: Earnings before interest and taxes (EBIT) - P700 million Earnings before interest, taxes and depreciation (EBITDA) -P850 million Interest expense is P200 million Depreciation is the company’s only non-cash expense What is the company’s net cash flow?

An analyst has collected the following information regarding GoNa Grocers: Earnings before interest and taxes (EBIT) - P700 million Earnings before interest, taxes and depreciation (EBITDA) -P850 million Interest expense is P200 million Depreciation is the company’s only non-cash expense What is the company’s net cash flow?

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter1: Introduction To Business Activities And Overview Of Financial Statements And The Reporting Process

Section: Chapter Questions

Problem 31E

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An analyst has collected the following information regarding YYYYY: Earnings before interest and taxes (EBIT) = P700 million. Earnings before interest, taxes, depreciation and amortization (EBITDA) = P850 million. Interest expense = P200 million. The corporate tax rate is 40 percent. Depreciation is the company’s only non-cash expense or revenue. What is the company’s net cash flow?
Suppose your company sells goods for $450, of which $275 is received in cash and $175 is on account. The goods cost your company $155 and were paid for in a previous period. Your company also recorded salaries and wages of $145, of which only $45 has been paid in cash. How would i answer the following questions?? Calculate the amount that should be reported as net cash flow from operating activities. Calculate the amount that should be reported as net income. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).
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