Problem:
Enigma has the following financial information: Net Income $70,000 Taxable Income (EBT) $100,000 Interest Expense $20,000 Depreciation Expense $15,000 Tax Expense $30,000 Increase in Current Assets $20,000 Increase in A/P and Accruals $10,000 Decrease in Gross Fixed Assets $100,000 No changes were made in interest payable or taxes payable. Based on the information in the table above,
Required:
Question 1: What is Enigma's cash flow from operations? Explain in detail and also show all work please provide step by step solution.
A) $85,000
B) $100,000
C) $105,000
D) $75,000