Question: Excel Problem Company ZYX has asked you to help complete some of their finance work for 2015. They tell you the interest for the year

Excel Problem Company ZYX has asked you to help complete some of their finance work for 2015. They tell you the interest for the year was $50,000, and the corporate tax rate was 38%.Company ZYX's 2015 Income Statement:

2015

2014

Sales

$ 3,450,000

$ 3,000,000

COGS

986,000

658,934

Gross Profit

2,464,000

2,341,066

SG&A Expenses

239,000

191,200

Depreciation

135,000

108,000

EBIT

2,090,000

2,041,866

Interest Expense

50,000

25,833

EBT

2,040,000

2,016,033

Taxes

775200

766,092

Net Income

1,264,800

1,249,940

1.Calculate the operating cash flow amount for 2015

2.What is the cash coverage for 2015?

3.If you were told that the amount of inventory on the 2015 balance sheet was $275,000, what is the inventory turnover?

4.Given your findings in part A, what is the days in inventory? (Round to nearest whole number)

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