Understanding Interest Expense on Cash Flow Statement Easily
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A firm's Income Statement shows Sales Revenue of 100,000, Cost of Sales of60,000, Administrative Expenses of 10,000, Rental Expenses of20,000, Interest Revenue of 10,000, and Interest Expense of5,000. Assuming there are no other items to be considered and that the income taxes are 35% of net income before taxes, what is the operating income of this firm?
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