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$

How much would cash flow be if there were only $14,000 in depreciation? All other factors are the same.

c.How much cash flow is lost due to the reduced depreciation from $46,000 to $14,000?