Problem:

Enigma has the following financial information: Net Income $70,000 Taxable Income (EBT) $100,000 Interest Expense $20,000 Depreciation Expense $15,000 Tax Expense $30,000 Increase in Current Assets $20,000 Increase in A/P and Accruals $10,000 Decrease in Gross Fixed Assets $100,000 No changes were made in interest payable or taxes payable. Based on the information in the table above,

Required:

Question 1: What is Enigma's cash flow from operations? Explain in detail and also show all work please provide step by step solution.

A) $85,000

B) $100,000

C) $105,000

D) $75,000