How much cash does the firm actually have?
You are Olivia, a financial analyst who works for an investment bank in downtown Denver, Colorado.
You are analyzing the current cash condition of Sukam Inc. You have the following information from the company's financial reports:
The company reported net sales of [tex]$5,625 million. Assume that there were no noncash sales.
• Operating costs (excluding depreciation and amortization) were 65% of its total revenues.
Depreciation and amortization charges were 5% of total sales.
Interest charges were 15% of EBIT with a tax rate of 40%.
is the money that the business is left with after paying operating expenses, interest expense, and taxes. However, becau
revenues and expense are not cash transactions, net cash flow indicates the true cash flow situation of the company. The company's current
is: (Note: Do not round intermediate calculations, but round the final answer to the nearest million.)
O $[/tex]1,051 million
O [tex]$1,142 million
O $[/tex]1,256 million
O $982 million