1. Fill in the missing numbers in the following income statement for Lucas Enterprises: Income Statement Amount ($) Sales 720,000 Costs 380,000 Depreciation 110,000 EBIT ? Taxes (35%) ? Net Income ? 2. What is the OCF (Operating Cash Flow)? 3. What is the depreciation tax shield?
1. Fill in the missing numbers in the following income statement for Lucas Enterprises: Income Statement Amount ($) Sales 720,000 Costs 380,000 Depreciation 110,000 EBIT ? Taxes (35%) ? Net Income ? 2. What is the OCF (Operating Cash Flow)? 3. What is the depreciation tax shield?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter6: Accounting For Financial Management
Section: Chapter Questions
Problem 4MC
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
Transcribed Image Text:1. Fill in the missing numbers in the following income statement for
Lucas Enterprises:
Income Statement Amount ($)
Sales
720,000
Costs
380,000
Depreciation
110,000
EBIT
?
Taxes (35%)
?
Net Income
?
2. What is the OCF (Operating Cash Flow)?
3. What is the depreciation tax shield?
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