Fill in the missing numbers for the following income statement, and find the OCF and depreciation tax shield.**Answer**OCF = Depreciation tax shield = | | ||-------------------------|-------------|| Sales | $658,400 || Costs | 419,400 || Depreciation | 98,600 || EBIT | || Taxes (22%) | || Net income | |

The cash flow that is generated by a company from its primary business operation is term as the…

Fill in the missing numbers for the following income statement, and find the OCF and depreciation tax shield. Answer Sales $658,400 OCF = Costs 419,400 Depreciation 98,600 EBIT Taxes (22%) Depreciation tax shield = Net income

Fill in the missing numbers for the following income statement, and find the OCF and depreciation tax shield. Answer Sales $658,400 OCF = Costs 419,400 Depreciation 98,600 EBIT Taxes (22%) Depreciation tax shield = Net income

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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Question

Fill in the missing numbers for the following income statement, and find the OCF and depreciation tax shield.

**Answer**

OCF =

Depreciation tax shield =

| | |
|-------------------------|-------------|
| Sales | $658,400 |
| Costs | 419,400 |
| Depreciation | 98,600 |
| EBIT | |
| Taxes (22%) | |
| Net income | |

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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.) Sales Costs Depreciation EBIT Taxes (22%) Net income b. 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 answer to the nearest whole number, e.g. 32.) C. $ OCF 586,900 364,300 114,100 Depreciation tax shield
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