Consider the following income statement: Sales ......................... $657,900 Costs ......................... 352,900 Depreciation ................. 97,500 EBIT ............................... ?

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Consider the following income statement:

Sales ......................... $657,900

Costs ......................... 352,900

Depreciation ................. 97,500

EBIT ............................... ?

Taxes (35%) ....................... ?

Net income ....................... ?

Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield?

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Essentials of Corporate Finance

ISBN: 978-0078034756

8th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Feb 23, 2017 02:13 AM

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Consider the following income statement: Sales ......................... $657,900 Costs ......................... 352,900 Depreciation ................. 97,500 EBIT ............................... ?

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Essentials of Corporate Finance

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