CumChan Corporation Had Operating Income (EBIT) of $2,500,000 in 2005

question 83

Multiple Choice

CumChan Corporation had operating income (EBIT) of $2,500,000 in 2005, depreciation expenses of $500,000, and dividends paid of $400,000.What is CumChan's operating cash flow (EBITDA) for 2005?

• A)$3,000,000
• B)$6,000,000
• C)300 percent
• D)$3,300,000

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Definitions:

Trade Deficits

A situation where a country's imports exceed its exports over a certain period, leading to more money leaving the economy than entering it.

National Income

National Income is the total value of all goods and services produced by a country's economy over a specific period, often used to gauge economic performance.

Real Interest Rates

The rate of interest an investor expects to receive after allowing for inflation, reflecting the true cost of capital.

Federal Budget Deficit

The amount by which government spending exceeds revenue over a specified period, leading to the need for borrowing or debt issuance.