Answered: A-2 Ad’s most recent income statement…

A-2 Ad’s most recent income statement shows that net income was $42,000, depreciation was $100,000, and taxes were $28,000. What was A-2 Ad’s net cash flow?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter2: Analysis Of Financial Statements

Section: Chapter Questions

Problem 5PROB

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Question

A-2 Ad’s most recent income statement shows that net income was $42,000, depreciation was $100,000, and taxes were $28,000. What was A-2 Ad’s net cash flow?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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