Johnson's Nursery has net income of $42500, depreciation expense of $1800, interest expense of $900, tax of

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Question:

Johnson's Nursery has net income of $42500, depreciation expense of $1800, interest expense of $900, tax of 1600. addition to non-cash net working capital of $2300, and capital expenditures of $11700.

a.What is the amount of cash flow from assets?

b. Mention at least two reasons why the cash calculated in part is different than the firm's accounting profit (net income).

c. In addition to information you know that johnson's nursery earning before interest and taxes is $45000, therefore the firm's cash coverage ratio is 52. to which category of financial ratios does this ratio belong?

Do you think the lenders are content with this coverage ratio? why?