Question: Please help How much cash does the firm actually have? You are the CFO of ABC Corp. You are looking to hire a financial analyst,

 Please help How much cash does the firm actually have? You

Please help

How much cash does the firm actually have? You are the CFO of ABC Corp. You are looking to hire a financial analyst, and you've given an assignment to two short-listed candidates. You've given the following information to the job applicants: - The company reported net sales of $2,500 million. Assume that there were no noncash sales. - Operating costs (excluding depreciation and amortization) were 65% of the company's total revenues. - Depreciation and amortization charges were 5% of total sales. - Interest charges were 15% of earnings before interest and taxes (EBIT) with a tax rate of 40%. You've asked the candidates to give you a number that best represents the cash flow situation of the company. Finn submits a report stating that the firm has $508 million in cash available. Arty submits a report stating that the firm has $382.5 million in cash. Based on the information given to them, which applicant has provided a better estimate of the company's current cash flows? Check all that apply. Arty Finn

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