Homework Answers
1. Missing figures are calculated as per below:
EBIT = Sales - Costs - Depreciation
EBIT = $558400 - $346800 - $94500
EBIT = $117100
Taxes = 35% * EBIT
Taxes = 35% * $117100 = $40985
Net income = EBIT - Taxes
Net income = $117100 - $40985 = $76115.
Calculation of operating cash flow:
Operating cash flow = Net income + Depreciation
Operating cash flow = $76115 + $94500 = $170615
Calculation of Depreciation tax shield:
Depreciation tax shield = Tax rate * Depreciation expense
Depreciation tax shield = 35% * $94500 = $33075
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7.
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1.) a. Fill in the missing numbers for the following income statement b. Calculate the OCF...
1.)
a. Fill in the missing numbers for the following income
statement
b. Calculate the OCF
c. What is the depreciation tax shield?
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Consider the following income statement: Sales Costs Depreciation Taxes $ 821,160 534,240 121,500 35 % Required: (a) Calculate the EBIT. (Click to select) (b) Calculate the net income. (Click to select) (c) Calculate the OCF (Click to select) (d) What is the depreciation tax shield? (Click to select)
Bonus homework for class Please show Formulas! thanks in advance! 1. Calculating OCF [LO1] Consider the...
Bonus homework for class Please show Formulas! thanks in advance! 1. Calculating OCF [LO1] Consider the following income statement: Sales $713,500 Cost 497,300 EBIT ? Taxes (34%) ? Net Income ? Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield? 2. Operating Cash Flow and Leverage [LO41 A proposed project has fixed costs of $83,000 per year. The operating cash flow at 9,100 units is $102,900. Ignoring the effect of taxes, what is...
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7.
Problem 10-4 Calculating OCF [L01] Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) Sales 668,000 Costs 430,600 Depreciation 103,400 EBIT Taxes (23%) 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 Depreciation tax shield C.
$193,000; depreciaiun a tax rate of 35 percent. What is the projected Hel mo Calculating OCF [LO1] Consider the following income statement: 4. $713,500 497,300 87,400 Sales Costs Depreciation EBIT Taxes (34%) Net income Fill in the missing numbers and then calculate the OCF. What is the depreciation shield?
Problem 9-4 Calculating OCF [LO 2] a. Fill in the missing numbers in the following income statement: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32.) 622,400 376,800 128,100 Sales Costs Depreciation EBIT Taxes (22%) Net income b. What is the OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32.) c. What is the depreciation tax shield? (Do not round intermediate calculations and round your...
1.)
a. Fill in the missing numbers for the following income
statement
b. Calculate the OCF
c. What is the depreciation tax shield?
Chapter 10 Homework Saved Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) 20 points Sales Costs Depreciation EBIT 669,200 432,100 105,000 X 024120 Skipped Taxes (25%) Net income eBook Print References b. Calculate the OCF. (Do not round intermediate calculations.) c. What is the depreciation tax shield? (Do not round...
Consider the following income statement: Sales Costs Depreciation Taxes $ 821,160 534,240 121,500 35 % Required: (a) Calculate the EBIT. (Click to select) (b) Calculate the net income. (Click to select) (c) Calculate the OCF (Click to select) (d) What is the depreciation tax shield? (Click to select)
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