Question
Assume a corporation has earnings before depreciation and taxes of $121,000, depreciation of $49,000, and that it has a 40 percent tax bracket. a. Compute
Assume a corporation has earnings before depreciation and taxes of $121,000, depreciation of $49,000, and that it has a 40 percent tax bracket.
a.Compute its cash flow using the following format.
b. How much would cash flow be if there were only $13,000 in depreciation? All other factors are the same.
c.How much cash flow is lost due to the reduced depreciation from $49,000 to $13,000?
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Auditing Cases An Interactive Learning Approach
Authors: Steven M Glover, Douglas F Prawitt
4th Edition
0132423502, 978-0132423502
