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ZNAPty Ltd has sales of $40,000,000, cost of goods sold of $15,000,000, operating expenses of $7,500,000, depreciation is $5,000,000. Interest Expense of $3,000,000. Tax rate

ZNAPty Ltd has sales of $40,000,000, cost of goods sold of $15,000,000, operating expenses of $7,500,000, depreciation is $5,000,000. Interest Expense of $3,000,000. Tax rate is 30%.

  1. What is the net profit & operating cash flow?
  2. What is the dollar value of the Depreciation tax shield?
  3. What is the dollar value of Interest cost deductability?

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