Question

Kendall Corners Inc. recently reported after-tax profits of $3.1 million. The company’s depreciation expense for the same period was $500,000. What is the company’s net cash flow? Assume the firm has no amortization expense .

Answer 1

$3,600,000

Step-by-step explanation:

Given that,

Kendall Corners Inc. after-tax profits (Net income) = $3.1 million

Company’s depreciation expense for the same period = $500,000

There is an assumption that the firm has no amortization expense.

Therefore,

Company’s net cash flow:

= Net income + Depreciation + amortization

= $3,100,000 + $500,000 + 0

= $3,600,000