Question

Sample Test Problem 3.06 Oriole Corporation reported EBITDA of $7,299,900 and net income of $3,328,650 for the fiscal year ended December 31, 2017. During the same period, the company had $1,155,369 in interest expense, $1,023,274 in depreciation and amortization expense, and an average corporate tax rate of 35 percent. What was the cash flow to investors from operating activity during 2017? (Round answer to o decimal places, e.g. 5,275.) Cash flow from operating activity Click if you would like to Show Work for this question: Modify Show Work
Oriole Corporation reported EBITDA of $7,299,900 and net income of $3,328,650 for the fiscal year ended December 31, 2017. During the same period, the company had $1,155,369 in interest expense, $1,023,274 in depreciation and amortization expense, and an average corporate tax rate of 35 percent. What was the cash flow to investors from operating activity during 2017?

Answer 1

Cash flow from operating activities = Net income + Depreciation + change in working capital

Since change in working capital is not mentioned, i'm assuming it is 0

Cash flow from operating activities =3328650 + 1023274

Cash flow from operating activities = 4351924