I know this is probably super easy but I am having a hard time with it.
Motors Inc. recently reported $6 million of net income. Its EBIT was $13 million, and its tax rate
was 40%. What was its interest expense? Then divide $6 million net
income by 1-T = 0.6 to find the pre-tax income.
The difference between EBIT and taxable income must be the interest
2) Kendall Corners Inc. recently reported net income of $3.1 million and
depreciation of $500,000. What was its net cash flow? Assume it had no amortization expense.