Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) Sales Costs Depreciation EBIT Taxes (23%) Net income $ 659,000 420,100 98,900 a. Calculate the OCF. (Do not round intermediate calculations.) b. What is the depreciation tax shield? (Do not round intermediate calculations.) a. OCF $ 206,580 b. Depreciation tax shield

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 3P
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Fill in the missing numbers for the following income statement. (Do not round
intermediate calculations.)
Sales
Costs
Depreciation
EBIT
Taxes (23%)
Net income
$
659,000
420,100
98,900
a. Calculate the OCF. (Do not round intermediate calculations.)
b. What is the depreciation tax shield? (Do not round intermediate calculations.)
a. OCF
$
206,580
b. Depreciation tax shield
Transcribed Image Text:Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) Sales Costs Depreciation EBIT Taxes (23%) Net income $ 659,000 420,100 98,900 a. Calculate the OCF. (Do not round intermediate calculations.) b. What is the depreciation tax shield? (Do not round intermediate calculations.) a. OCF $ 206,580 b. Depreciation tax shield
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