Kuipers, Inc. 1999 Income Statement ($ in millions) Net sales $1,384
Less: Cost of goods sold 605
Less: Depreciation 180
Earnings before interest and taxes 599
Less: Interest paid 80
Taxable income 519
Less: Taxes 156
Net income $363
Addition to retained earnings $254
Dividends paid 109
Kuipers, Inc.
12/31/98 and 12/31/99 Balance Sheet
($ in millions)
1998 1999
1998 1999
Cash $100 $121 Accounts payable $400 $350
Accounts rec. 350 425 Notes payable 390 370
Inventory 440 410 Total
$790 $720
Total $890 $956 Long-term debt 500 550
Net fixed assets 1,556 1,704 Common stock 600 580
Retained earnings 556 810
Total assets $2,446 $2,660 Total liabilities $2,446 $2,660
What is the firm's operating cash flow for 1999?
a) 359
b) 441
c) 543
d) 589
e) 623