Question
Consider an organization that has Earnings Before Tax of $100,000. Assume amortization expense for this organization is zero, and it is in the 30% tax
Consider an organization that has Earnings Before Tax of $100,000. Assume amortization expense for this organization is zero, and it is in the 30% tax bracket. Answer the following questions:
A) What is the cash flow?
b)Now assume amortization is $50,000. Does the cash flow change? If so, why and by how much?
-------------------------------------- Answer the following discussion questions:
1) Provide a definition for risk and explain how risk can be measured
2) Should managers try to avoid risk?
Consider an organization that has Earnings Before Tax of $100,000. Assume amortization expense for this organization is zero, and it is in the 30% tax bracket. Answer the following questions:
A) What is the cash flow?
b)Now assume amortization is $50,000. Does the cash flow change? If so, why and by how much?
Answer the following discussion questions:
1) Provide a definition for risk and explain how risk can be measured
2) Should managers try to avoid risk?
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Practical Auditing
Authors: Ernest Evan Spicer, Ernest Charles Pegler
17th Edition
0406678014, 9780406678010
