Distinguish between income statements-cash flow statements

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Reference no: EM131966697

1. The signal company has operating income of $600,000. The company's depreciation expense is $100,000 and it has a 40% tax rate. If the company has $50,000 in annual interest expense, calculate the net income and cash flow.

2. Distinguish between income statements and cash flow statements. Why do company need both?

Reference no: EM131966697

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