• The company reported net sales of $6,250 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%.Net income is the money that the business is left with after paying operating expenses, interest expense, and taxes. However, because some revenues and expense are not cash transactions, net cash flow indicates the true cash flow situation of the company. The company's current cash flow is:_________ a. $573 million b. $379 million c. $761 million d. $955 million

The company's current cash flow can be calculated by calculating the profit after tax. In order to find profit after tax, we need to deduct all the costs incurred during the period. After calculating Profit after tax we will add back the depreciation amount because depreciation is a non-cash item.

Net Profit After Tax

Net Sales $6,250

Less: Operating cost 65% $4062..50

Less: Depreciation 5% $312.50

EBIT $1,875

Less: Interest 15% of EBIT $281.25

Earning After Interest $1,593.75

Less : taxation (40%) $637.50

Net profit after Tax $956.25

Cashflow Statement

Net profit after Tax $956.25

ADD: Depreciation $312.5

Total Cash Flow $1268.75