00:01
Okay, so we are provided with data from the butterfly tractor income statement and let us find the net income.
00:09
So the income statement is a financial report that shows the company's revenues and expenses.
00:14
After the deduction of all the expenses from the revenue, we are left with the firm's profit or net income.
00:19
So, we have sales equal to 14, cogs equal to 8, depreciation equal to 2, interest is equal to 1, ebit is 3, tax rate is 35 % and the tax is 105 and the net income is 195.
00:47
Therefore the net income in this case is 1950 000 dollars now we need to find the net cash flow so the net cash flow is the gain or loss of cash over a certain period of time it is calculated as cash inflows minus the cash outdoors so this is equal to 1 .95 plus 2 plus 0 and this is equal to 3 .95 therefore, the cash flow is 39500 $.
01:16
And we were not informed about any change in the working capital.
01:19
So we will act as if there were no change.
01:21
That is the change in wc is 0...