1. Tubby toys That its Of rubber ducks will generate sales of $6.60 million, operating cost of $3.60 million, and a depreciation expense of $0.60 million. If the tax rate is 30%, what is the firms operating cash flow?
2. Jeff Meyer is applying for health insurance. He is asked on the application form, “Have you ever had cancer?” and he answers no. Later he discovers that he actually had cancer at the time he filled out the application form. Can the insurance company void his contract?