• the company just reported net sales of $2,500,000. assume that there are no noncash sales. • the operating costs (excluding depreciation and amortization) are 65% of the company’s total revenues. • its depreciation and amortization charges are 5% of total sales. • the interest charges are 15% of ebit, and it pays a 40% tax rate.

Respuesta :

Net cash flow, The amount of cash made or spent during a certain time period, typically spanning one or more reporting periods, is known as net cash flow.

What is net cash flow?

The amount of cash made or spent during a certain time period, typically spanning one or more reporting periods, is known as net cash flow. This idea is used to evaluate a company's potential to create cash in the short term, which is regarded to be its financial viability. The best indication of a company's viability is if it regularly produces positive net cash flow over an extended period of time. On the other hand, an ongoing negative net cash flow is the key sign of a variety of operational or financial issues.

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