Question
For this and the next 4 questions. Consider the income statement below. Calculate retained earnings. Calculate operating cash flow? Calculate earnings per share? Suppose depreciation
For this and the next 4 questions. Consider the income statement below. Calculate retained earnings.
Calculate operating cash flow?
Calculate earnings per share?
Suppose depreciation INCREASES by 80%. Calculate operating cash flow and earnings per share?
Suppose depreciation DECREASES by 80%. Calculate operating cash flow and earnings per share?
Tax rate: T | 20% |
Sales | 500,000 |
Cost of goods sold | 325,000 |
Gross profit | 175,000 |
Depreciation | 4,000 |
Other expenses | 31,000 |
Total operating expenses | 35,000 |
EBIT | 140,000 |
Interest charges | 7,000 |
EBT | 133,000 |
Taxes | 26,600 |
Net income | 106,400 |
Dividend payout ratio | 25% |
Stock price: P0 | $12 |
Shares outstanding: n | 10,000 |
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