MBA 503-Carter Corporation made sales of $900 million during 2014.
January 8th, 2018
Carter Corporation made sales of $900 million during 2014. Of this amount, Carter collected cash for all but $27 million. The company’s cost of goods sold was $290 million, and all other expenses for the year totaled $375 million. Also during 2014, Carter paid $375 million for its inventory and $255 million for everything else. Beginning cash was $70 million. Carter’s top management is interviewing you for a job and they ask two questions:a. How much was Carter’s net income for 2014?b. How much was Carter’s cash balance at the end of 2014?