i am having issues with 3 questions. i will post them seporatly. if you answer w
ID: 2623139 • Letter: I
Question
i am having issues with 3 questions. i will post them seporatly. if you answer while i am asleep i willaward the points when i get upin the morning.
for those that cant see the picture for whatever reason here is the question
A proposed new project has projected sales of $116,000, costs of $50,000, and depreciation of $11,900. The tax rate is 30 percent. Calculate operating cash flow using the four different approaches.
i need to know the following:
and the last thing i need to know "Is the answer the same in each case? yesor no"
EBIT + Depreciation - Taxes Top-down Tax-shield Bottom-up A proposed new project has projected sales of $116,000. costs of $50,000. and depreciation of $11,900. The tax rate is 30 percent. Calculate operating cash flow using the four different approaches. Is the answer the same in each case?Explanation / Answer
INCOME STATEMENT:-
SALES = 116000
LESS:- COSTS = (50000)
LESS:- DEPRECIATION = (11900)
EBIT = 54100
LESS:- TAX @ 30% = (16230)
PAT or NET INCOME = 37870
1]OPERATING CASHFLOW = EBIT + DEPRECIATION
INCOME STATEMENT:-
SALES = 116000
LESS:- COSTS = (50000)
LESS:- DEPRECIATION = (11900)
EBIT = 54100
LESS:- TAX @ 30% = (16230)
PAT or NET INCOME = 37870
1]OPERATING CASHFLOW = EBIT + DEPRECIATION
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