Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Check my w Assume a corporation has earnings before depreciation and taxes of $126,000, depreciation of $42,000, and that it has a 35 percent tax

image text in transcribed
image text in transcribed
Check my w Assume a corporation has earnings before depreciation and taxes of $126,000, depreciation of $42,000, and that it has a 35 percent tax bracket a. Compute its cash flow using the following format. (Input all answers os positive values.) Earnings before depreciation and taxes Depreciation Earrings before taxes Taxes Earnings after taxes Depreciation Cash flow b. How much would cash flow be if there were only $16,000 in depreciation? All other factors are the same 1 b. How much would cash flow be if there were only $16,000 in depreciation? All other factors are the same. Snces Cash flow c. How much cash flow is lost due to the reduced depreciation from $42,000 to $16,000? Cash flow lost Prev 1 of 8 HI! te Graw Nord > G 46F Cloudy O II E pe here to search

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Business Of Finance

Authors: Withers Hartley 1867 1950

1st Edition

1313069299, 9781313069298

More Books

Students also viewed these Finance questions