Question

Net Cash Flows The Moore Corporation has operating income (EBIT) of $850,000. The companys depreciation expense is $150,000.
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Answer #1

Moore Corporation is 100% equity financed so interest expense will be nil.

Therefore EBIT = EBT

Particulars Amount ($)
PBT        8,50,000
(-) Tax @ 35%        2,97,500
Net Income        5,52,500
(+) Depreciation        1,50,000
Net Cash Flow        7,02,500

Thumbs up please if satisfied. Thanks :)

Comment if further doubts in above

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