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Compute its cash flow using the following format. (In

Compute its cash flow using the following format. (In

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Assume a corporation has earnings before depreciation and taxes of $118,000, depreciation of $46,000, and that it has a 40 percent tax bracket. a. Compute its cash flow using the following format. (Input all answers as positive values.) Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes Earnings after taxes Depreciation Cash flow b. How much would cash flow be if there were only $12,000 in depreciation? All other factors are the same. Cash flow
Transcribed Image Text:Assume a corporation has earnings before depreciation and taxes of $118,000, depreciation of $46,000, and that it has a 40 percent tax bracket. a. Compute its cash flow using the following format. (Input all answers as positive values.) Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes Earnings after taxes Depreciation Cash flow b. How much would cash flow be if there were only $12,000 in depreciation? All other factors are the same. Cash flow
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