Need help with this question The forecast for your division for next year is sales revenue of $250,000, butinterest expense will be $9,000. Operating expenses will be $195,000 invariable costs and $35,000 in fixed costs. Depreciation expenses will be$18,000.If the applicable tax rate is 39%, what is the forecast OCF for next year?

Step 1: Calculate Earnings Before Interest and Taxes (EBIT):• Subtract Operating Expenses and…

Answered: The forecast for your division for next…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 20P

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