The Ragin Cajun had an operating income (EBIT) of $260,000 last year. The firm had $18,000 in depreciation expenses, $15,000 in interest expenses, and $60,000 in selling, general, and administrative expenses. If the Cajun has a marginal tax rate of 40 percent, what was its cash flow from operating activities last year?
A) $165,000
B) $230,000
C) $132,000
D) $162,000
Correct Answer:
Verified
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