Part 2Required: Assume that Dodder operates in a country with a 40% tax rate and that accounting depreciation is fully tax deductible. Completethe following table. From a Cash Flow perspective, which depreciation method would you prefer?Straight LineDouble Declining BalanceCash RevenueCash ExpensesDepreciation ExpenseIncome before taxIncome TaxNet IncomeOperating Cash FlowUpon completion, enter Operating Cash Flow below:Straight Line - 0% TaxDDB - 0% TaxStraight Line - 40% TaxDDB - 40% Tax Problem 8-6: The Dodder CorporationThe Dodder Corporation has annual cash revenues of 30000 and annual cash expenses of 12000. If it used straight line depreciation, theannual expense would be $7560. Using Double Declining Balance, the annual expense would be 16800.Part 1Required: Assume that Dodder operates in a country with a 0% tax rate and complete the following table. From a Cash Flow perspective,which depreciation method would you prefer?Straight LineDouble Declining BalanceCash RevenueCash ExpensesDepreciation ExpenseIncome before taxIncome TaxNet IncomeOperating Cash Flow

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Part 2 Required: Assume that Dodder operates in a country with a 40% tax rate and that accounting depreciation is fully tax deductible. Complete the following table. From a Cash Flow perspective, which depreciation method would you prefer? Straight Line Double Declining Balance Cash Revenue Cash Expenses Depreciation Expense Income before tax Income Tax Net Income Operating Cash Flow Upon completion, enter Operating Cash Flow below: Straight Line - 0% Tax DDB - 0% Tax Straight Line - 40% Tax DDB - 40% Tax

Part 2 Required: Assume that Dodder operates in a country with a 40% tax rate and that accounting depreciation is fully tax deductible. Complete the following table. From a Cash Flow perspective, which depreciation method would you prefer? Straight Line Double Declining Balance Cash Revenue Cash Expenses Depreciation Expense Income before tax Income Tax Net Income Operating Cash Flow Upon completion, enter Operating Cash Flow below: Straight Line - 0% Tax DDB - 0% Tax Straight Line - 40% Tax DDB - 40% Tax

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Using indirect method, compute for the following: 1. net cash flow from operating activities 2. net cash flow from investing activities 3. net cash flow from financing activities
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Klp.6 Using the data in the table, calculate the operating cash flow for Cyberdyne. Round your answer to the nearest dollar (no decimals). Cyberdyne Systems Selected Financial Information Net Income $1,215 Depreciation 400 Interest 550 Tax Rate 0.30 Operating cash flow = $
Please answer Part B and C. The following are answers from previous questions in case you need the below information. Operating Cash Flow: Operating Cash Flow (OCF)= Net Income + Depreciation – Increase in Working Capital. OCF=419,573+11,751-110,249= 321,075 Net Capital Spending: Net capital expenditures (NCE) = Fixed asset (current period) - Fixed asset (prior period) + depreciation (current period) NCE=258,251-261,779+11,751 =8,223 iii. Change in Net Working Capital Net Working Capital (NWC)= Current assets- current Liabilities Year 2019 : NWC =421,609-148,087 =273,522 Year 2020 : NMW= 550,572-166,801 =383,771 Change in Net Working Capital = 383,771-273,522=110,249 Sl.NO PARTICULARS AMOUNT EBIT + DEPRECIATION - TAXES = 597976+11751-178055= $ 431,672 ii] NET CAPITAL SPENDING: ENDING NET FIXED ASSETS - BEGINNING NET FIXED ASSETS + DEPRECIATION = 258251-261779+11751= $ 8223 iii] CHANGE IN NET WORKING…
How is it the operating Cash flow is positive if Earnings Before Interest and Tax is a negative figure if the formula is EBIT+Depreciation -Tax. kindly explain that calculation for operating Cash Flow
↓ The following table shows the projected free cash flows of an acquisition target. The potential acquirer wants to estimate its maximum acquisition price at an 8 percent discount rate and a terminal value in year 5 based on the perpetual growth equation with a 4 percent perpetual growth rate. Year Free cash flow 1 -950 2 3 -475 0 4 290 a. Estimate the target's maximum acquisition price. Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. > Answer is complete but not entirely correct. Maximum acquisition price $ 8,640 x 5 880 b. Estimate the target's maximum acquisition price when the discount rate is 7 percent and the perpetual growth rate is 5 percent. Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. X Answer is complete but not entirely correct. Maximum acquisition price $ 46,921 X
Compute for the: a. net cash flow from operating activities b. net increase (decrease in cash)
I would like question 3 answered using the information. I would like the cash flow statement done.
Required Information [The following information applies to the questions displayed below.] Portions of the financial statements for Hawkeye Company are provided below. HAWKEYE COMPANY Income Statement For the Year Ended December 31, 2824 ($ in millions) Sales Cost of goods sold Gross margin Operating expenses: Salaries Depreciation Loss on sale of land Total operating expenses Operating income Other incone (expense): Gain on sale of cash equivalents Interest expense Income before tax Income tax expense Net income HAWKEYE COMPANY Selected Accounts from Comparative Balance Sheets December 31, 2824 and 2023 ($ in millions) Year Cash Accounts receivable Inventory Accounts payable Salaries payable Interest payable Income tax payable Cash Flows from Operating Activities Adjustments for noncash effects: Changes in operating assets and Mablities: 2824 Net cash flows from operating activities $ 246 388 894 227 187 69 97 $ 225 183 14 S 2023 $217 487 867 268 282 57 118 $830 315 515 0 422 93…
B
The following information is available for Felix Company: Net income $300 Decrease in plant and equip. $40 Depreciation expense $20 Increase in deferred tax asset $5 Gain on sale of assets $35 Decrease in long-term debt $50 Increase in inventories Decrease in accounts payable $15 $25 What is cash flow from operating activities for Felix Company? Select one O A. $240 O B. $70 O C. $320 O D. $250