Provide this question solution general accounting Consider the following income statement:Sales$602,184Costs$391,776Depreciation $89,100Taxes32%Required:1. Calculate the EBIT.2. Calculate the net income.3. Calculate the OCF.4. What is the depreciation tax shield?

Explanation for 1: EBIT can be calculated as = Sales - Costs - DepreciationSales are given as…

Answered: Consider the following income…

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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Consider the following income statement: Sales $602,184 Costs $391,776 Depreciation $89,100 Taxes 32% Required: 1. Calculate the EBIT. 2. Calculate the net income. 3. Calculate the OCF. 4. What is the depreciation tax shield?