Consider the following income statement: Sales Costs Depreciation Taxes $ 748,168 486,752 110,700 23% Calculate the EBIT. EBIT Calculate the net income. Net income

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 26MCQ
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Calculate the OCF.
OCF
What is the depreciation tax shield?
Depreciation tax shield
Transcribed Image Text:Calculate the OCF. OCF What is the depreciation tax shield? Depreciation tax shield
Consider the following income statement:
Sales
Costs
Depreciation
Taxes
Calculate the EBIT.
EBIT
$748,168
486,752
110,700
Net income
23%
Calculate the net income.
Transcribed Image Text:Consider the following income statement: Sales Costs Depreciation Taxes Calculate the EBIT. EBIT $748,168 486,752 110,700 Net income 23% Calculate the net income.
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