Assume a corporation has earnings before depreciation and taxes of $103,000, depreciation of $41,000, 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	$

b.	How much would cash flow be if there were only $15,000 in depreciation? All other factors are the same.

Cash flow

$

c.	How much cash flow is lost due to the reduced depreciation from $41,000 to $15,000?

Cash flow lost

$