Edwards Electronics recently reported $11,250 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges, it had $3,500 of bonds that carry a 6.25% interest rate, and its federal- plus-state income tax rate was 35%. How much was its net cash flow?
A. $3,284.75
B. $3,457.63
C. $3,639.61
D. $3,831.17
E. $4,032.81

Question

06-06-2024
Business

Answered

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Edwards Electronics recently reported $11,250 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreciation. The company had no amortization charges, it had $3,500 of bonds that carry a 6.25% interest rate, and its federal- plus-state income tax rate was 35%. How much was its net cash flow?
A. $3,284.75
B. $3,457.63
C. $3,639.61
D. $3,831.17
E. $4,032.81

Sagot :

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