Problem 12-3 (Algo) Cash flow [LO12-2] Assume a firm has earnings before depreciation and taxes of $570,000 and no depreciation. It is in a 30 percent tax bracket. a. Compute its cash flow. Cash flow b. Assume it has $570,000 in depreciation. Recompute its cash flow. Cash flow c. How large a cash flow benefit did the depreciation provide? Benefit in cash flow

Assume a firm has earnings before depreciation and taxes of $570,000 and no depreciation, it is in a 30 percent tax bracket. a. Compute its cash flow. b. Assume it has $570,000 in depreciation. Recompute its cash flow. c. How large a cash flow benefit did the depreciation provide