Mildred Metals recently reported $9,000 of sales, $6,000 of operating costs other than?

Question

depreciation and $1,500 of depreciation. The company had no amortization charges, it had $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. What was its net cash flow?

Answer 1

Revenue (9000), less cash operating expenses (6000), less cash interest expense (4000 * 7% = 280), less cash tax ((9000-6000-280-1500)*.4=488) = $2,232

Answer 2

$9280 gross, $1068 Net