The following information is derived from the financial records of Brown Company for the year ended December 31, 2004:
|
Sales |
$3,400,000 |
|
Cost of Goods Sold (COGS) |
(2,100,000) |
|
Depreciation |
(300,000) |
|
Interest Paid |
(200,000) |
|
Gain on Sale of Old Equipment |
400,000 |
|
Income Taxes Paid |
(300,000) |
|
Net Income |
$900,000 |
- Brown issued bonds on June 30, 2004 and received proceeds of $4,000,000.
- Old equipment with a book value of $2,000,000 was sold on August 15, 2004 for $2,400,000 cash.
- Brown purchased land for a new factory on September 30, 2004 for $3,000,000, issuing a $2,000,000 note and paying the balance in cash.
Cash flow from operations less capital expenditures is:
A. $200,000.
B. $2,200,000.
C. $6,200,000.
|
