Difference between cash flow and net income


A firm generates sales of $250,000, depreciation expense of $50,000, taxable income of $50,000, and has a 35% tax rate. What is the difference between its cash flow and its net income?

a) $17,500

b) $50,000

c) $67,500

d) $82,500

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Business Management: Difference between cash flow and net income
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