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Assume a corporation has earnings before depreciation and taxes of $115,000, depreciation of $43,000, and that it has a 40 percent tax bracket. a. Compute
Assume a corporation has earnings before depreciation and taxes of $115,000, depreciation of $43,000, and that it has a 40 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 115,000 43,000 72,000 28,800 43,200 43,000 86,200 $ $ b. How much would cash flow be if there were only $12,000 in depreciation? All other factors are the same. Cash flow c. How much cash flow is lost due to the reduced depreciation from $43,000 to $12,000? Cash flow lost
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