Question

Kendall Corners Inc. recently reported net income of $3.8 million and depreciation of $570,000. What was its net cash flow? Assume it had no amortization expense. Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.

Answer 1

Answer: $4,370,000

Step-by-step explanation:

Given that,

Net income = $3.8 million

Depreciation = $570,000

Here, it was assumed that there were no amortization expense

Net cash flows = Net income + Depreciation

= $3,800,000 + $570,000

= $4,370,000

Non-cash expenses like depreciation included again in the net income for calculating the Net cash flows.