Provo, Inc., had revenues of $7 million, cash operating expenses of $3.5 million, and depreciation and...

 

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Provo, Inc., had revenues of $7 million, cash operating expenses of $3.5 million, and depreciation and amortization of $1.5 million during 2021. The firm purchased $400,000 of equipment during the year while increasing its inventory by $200,000 (with no corresponding increase in current liabilities). The marginal tax rate for Provo is 40 percent. What is Provo's cash flow from operations for 2021? 16-17 Provo, Inc., had revenues of $7 million, cash operating expenses of $3.5 million, and depreciation and amortization of $1.5 million during 2021. The firm purchased $400,000 of equipment during the year while increasing its inventory by $200,000 (with no corresponding increase in current liabilities). The marginal tax rate for Provo is 40 percent. What is Provo's cash flow from operations for 2021? 16-17

Answer rating: 100% (QA)

Explanation Cash flow from operations net income after tax depreciatio... View the full answer