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.)

b. 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?

Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes Earnings after taxes Depreciation Cash flow