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Problem:

Neiman Company has revenues of $120,000, general & administrative expenses of $37,500, interest expense of $54,500 and depreciation expense of $25,500. The company also purchased a new equipment for $35,000 - This belongs to investment in fixed assets. The firm is in the 40% tax bracket. What would be the firms cash flow from operations?

Note: Please provide reasons to support your answer.

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