Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume a corporation has earnings before depreciation and taxes of $108,000, depreciation of $46,000, and that it has a 35 percent tax bracket. a. Compute

image text in transcribedimage text in transcribed

Assume a corporation has earnings before depreciation and taxes of $108,000, depreciation of $46,000, and that it has a 35 percent tax bracket. a. Compute its cash flow using the following format. (Input all answers as positive values.) Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes Earnings after taxes Depreciation Cash flow b. How much would cash flow be if there were only $14,000 in depreciation? All other factors are the same. Cash flow c. How much cash flow is lost due to the reduced depreciation from $46,000 to $14,000? Cash flow lost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Insurance Formulas

Authors: Tomas Cipra

2010th Edition

3790829013, 978-3790829013

More Books

Students also viewed these Finance questions

Question

5. What is the plan?

Answered: 1 week ago

Question

Develop successful mentoring programs. page 400

Answered: 1 week ago