4. Calculating OCF [LO1] Consider the following income statement: Sales $747,300 582,600 Depreciation 89,300 Costs EBIT Taxes (22%) Net income ? Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield?
4. Calculating OCF [LO1] Consider the following income statement: Sales $747,300 582,600 Depreciation 89,300 Costs EBIT Taxes (22%) Net income ? Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![4. Calculating OCF [LO1] Consider the following income
statement:
Sales
$747,300
582,600
Depreciation 89,300
Costs
EBIT
Taxes (22%)
?
Net income
?
Fill in the missing numbers and then calculate the OCF.
What is the depreciation tax shield?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa67834ee-0fdf-4424-b804-68a4c92cb763%2Fd54c9258-b573-4245-a54c-6dedf2efe91c%2Fj73wx0o_processed.png&w=3840&q=75)
Transcribed Image Text:4. Calculating OCF [LO1] Consider the following income
statement:
Sales
$747,300
582,600
Depreciation 89,300
Costs
EBIT
Taxes (22%)
?
Net income
?
Fill in the missing numbers and then calculate the OCF.
What is the depreciation tax shield?
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