From income statement: Sales=$1500, Cash costs=$700, Depreciation =$600, t=34% Calculate the operation cash flow using two...

Question

Question

From income statement: Sales=$1500, Cash costs=$700, Depreciation =$600, t=34%
Calculate the operation cash flow using two approaches.

Answer 1

Answer #1

$1,500 Sales Less: Costs Depreciation Profit before tax Less: Tax @ 34% Net income $ 700 $ 600 $ 200 $ 68 $ 132

Sales-Costs-Taxes+Depreciation 1) EBIT + Depreciation - Taxes 2) Top-down $ $ 732 732 Sales-Cash expenses-Tax

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Answer 2

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