FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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
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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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