Question

Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) 657,800 418,700 98,300 Sales Costs Depreciation EBIT Taxes (21%) Net income 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

Answer 1

Less Less Sales Costs Depreciation EBIT Tax@21% Net Income $ 657,800.00 $418,700.00 $ 98,300.00 $ 140,800.00 140800*0.21 $ 29,568.00 $ 111,232.00 OCF EBIT -Taxes + Depreciation 140800-29568+98300 $209,532.00 Depreciation tax shield = Depreciation Tax Rate 98300*0.21 $ 20,643.00