onsider the following income statement: Sales $ 675,176 Costs 439,264 Depreciation 99,900 Taxes 23 % 1.Calculate...

Question

Question

onsider the following income statement: Sales $ 675,176 Costs 439,264 Depreciation 99,900 Taxes 23 %

1.Calculate the EBIT.

2 Calculate the net income.

3. Calculate the OCF.

4. What is the depreciation tax shield?

Answer 1

Answer #1

rate positively ..


	Sales	675,176
	Costs	439,264
	Depreciation	99,900
	EBIT =	136,012
	Tax @ 23%	31,283
	Net income	104,729



ans 1	EBIT = Sales - cost - depreciation =		136,012
ans 2	Net income = EBIT - Taxes		104,729
ans 3	Operating cash flow = Net income + depreciation		204,629
ans 4	Depreciation tax shield = Depreciation * tax rate=		22977
	22977

Answer 2

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