FINANCE Chapter 9 1Homewark instructiors Ihelp 1000 points Problem 9 4 Calculati

Question

FINANCE Chapter 9 1Homewark instructiors Ihelp 1000 points Problem 9 4 Calculating OCF LO 2] Fill in the missing numbers in the tollowing income statoment (Do not round intermediate calculations and round your answers to the nearest whole number, e g 32 845,700 Depreciabon Trees 130%) Net ncome What is the OCF? IDo not round intermediate calculations OCF What is the depreciation tax shield? (Do not round intermediate calculations and round your answer to the Depreciation tax shickd and round your answer to the nearest whole number, e.g. 32) neatest whole number, ep. 32) References eBook & Resources Worksheet

Explanation / Answer

Operating Cash Flow

= Net Income + Depreciation

= $140,420 + $97,900

= $238,320

Depreciation tax shield

= Depreciation expense x Tax rate

= $97,900 x 30%

= $29,370

Calculations Particulars Amount $ A Sales     645,700 B Costs     347,200 C Depreciation       97,900 D = A-B-C EBIT     200,600 E = D x 30% Taxes (30%)       60,180 F = D - E Net Income     140,420

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