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Question
Please refer to Table 3-2 for the following questions.Table 3-2
Enigma has the following financial information:
| Net Income | $70,000 |
| Taxable Income (EBT) | $100,000 |
| Interest Expense | $20,000 |
| Depreciation Expense | $15,000 |
| Tax Expense | $30,000 |
| Increase in Current Assets | $20,000 |
| Increase in A/P and Accruals | $10,000 |
| Decrease in Gross Fixed Assets | $100,000 |
No changes were made in interest payable or taxes payable.
Based on the information in Table 3-2, what is Enigma's cash flow from operations?
A) $85,000
B) $100,000
C) $105,000
D) $75,000
Answer
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