Use the following information to answer this question. Net sales $9,300 Less: Cost of goods sold 7,440 Less: Depreciation 310 Earnings before interest and taxes $1,550 Less: Interest paid Taxable income Less: Taxes Net income Dividends What is the cash flow to creditors? a. $1,053 million b. $1,860 million c. $359 million d. -$181 million e. $359 million 89 $1,461 438 $1,023 $773

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 3P
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Use the following information to answer this question.
Net sales
$9,300
Less: Cost of goods sold
7,440
Less: Depreciation
310
Earnings before interest and taxes $1,550
Less: Interest paid
Taxable income
Less: Taxes
Net income
Dividends
What is the cash flow to creditors?
a. $1,053 million
b. $1,860 million
c. $359 million
d. -$181 million
e. $359 million
89
$1,461
438
$1,023
$773
Transcribed Image Text:Use the following information to answer this question. Net sales $9,300 Less: Cost of goods sold 7,440 Less: Depreciation 310 Earnings before interest and taxes $1,550 Less: Interest paid Taxable income Less: Taxes Net income Dividends What is the cash flow to creditors? a. $1,053 million b. $1,860 million c. $359 million d. -$181 million e. $359 million 89 $1,461 438 $1,023 $773
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