Please do your own work, don't copy from the internet Q6) Cash flow (LO12-2) Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $40,000, and that it has a 24 percent tax bracket.Compute its cash flow using the following format: Earnings before depreciation and taxes _____Depreciation _____Earnings before taxes _____Taxes @ 24% _____Earnings after taxes _____Depreciation _____ Compute the cash flow for the company if depreciation is only $20,000.How much cash flow is lost due to the reduced depreciation from $40,000 to $20,000?

a. Earnings before depreciation and taxes 100,000 Depreciation 40,000 Earnings before taxes…

Answered: 6) Cash flow (LO12-2) Assume a…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

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Please do your own work, don't copy from the internet

Q6)

Cash flow (LO12-2) Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $40,000, and that it has a 24 percent tax bracket.
Compute its cash flow using the following format:

Earnings before depreciation and taxes _____

Depreciation _____

Earnings before taxes _____

Taxes @ 24% _____

Earnings after taxes _____

Depreciation _____

Compute the cash flow for the company if depreciation is only $20,000.
How much cash flow is lost due to the reduced depreciation from $40,000 to $20,000?

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