Question

Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) $ Sales Costs Depreciation EBIT Taxes (21%) Net income 666,800 429,200 102,800 134,800 28,308 106,492 S $ b. Calculate the OCF. (Do not round intermediate calculations.) c. What is the depreciation tax shield? (Do not round intermediate calculations.) b. OCF c. Depreciation tax shield 21,588

Answer 1

Solution: Sales costs Depreciations EBIT Taxes at 21% Net income 666800 429200 102800 134800 28308 106492 b) Net income Add : Depreciation 106492 102800 209292 OCF Depreciations x Tax rate Depreciation tax shield 102800 21% 21588