Calculating OCF Consider the following income statement: Fill in the missing numbers and then calculate the OCF.
Question:
Calculating OCF Consider the following income statement: Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield?
Transcribed Image Text:
Sales S876,400 Costs 547,300 128,000 Depreciation EBIT Taxes (34%) Net income
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
To find the OCF we need to complete the income state...View the full answer
Answered By
Wonder Dzidzormenu
As a professional accountant and a teacher, I explain account ing concepts in a more practical way that makes students more connected to the subject.
With over 10 years of teaching accounting , I offer a well constructed , easily understood and in-depth explanations to students questions.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
What is a depreciation tax shield and how does it affect capital budgeting decisions?
-
Consider the following income statement for WatchoverU Savings Inc. (in millions): a. What is WatchoverUs expected net interest income at year-end? b. What will be the net interest income at year-...
-
Consider the following income statement and noncash working capital account information of Yahk Ltd Yahk Assume Yahk uses IFRS YAHK LTD Noncash Working Capital Accounts As of December 31 20172016...
-
Consider the following information for a company: Sales (all credit): $6,000,000; Cost of Goods Sold: 80% of Sales; Accounts receivable: $350,000; Inventory: $600,000; Accounts payable: $150,000 What...
-
A bullet with a mass of 4.0 g and a speed of 650 m/s is fired at a block of wood with a mass of 0.095 kg. The block rests on a frictionless surface, and is thin enough that the bullet passes...
-
Ammonia flowing at 0.01 m3 /s is throttled from 900 kPa and 20°C to a pressure of 125 kPa by passing the refrigerant through the bank of small-diameter tubes shown in Fig. 4.58 that cause a...
-
Find five interesting facts in Tables 1.4 and 1.5. DATA FROM TABLE 1.5 TABLE 1.4 Broad Categories of Exports of Selected Countries, 2010 SITC Code Product United United States Germany Japan China...
-
1. What survey objectives would ACT have in asking colleges how they use its essay test? What objectives would Kaplan have for its survey research? 2. If you were a marketer for the College Board...
-
Evaluate the implications of fluid-structure interactions (FSI) in engineering design, considering the effects of fluid-induced forces on structural integrity, the occurrence of phenomena such as...
-
The file taxdata contains information from federal tax returns filed in 2007 for all counties in the United States (3,142 counties in total). Create a PivotTable in Excel to answer the following...
-
Calculating Projected Net Income A proposed new investment has projected sales of $740,000. Variable costs are 60 percent of sales, and fixed costs are $173,000; depreciation is $75,000. Prepare a...
-
OCF from Several Approaches A proposed new project has projected sales of $96,000, costs of $49,000, and depreciation of $4,500. The tax rate is 35 percent. Calculate operating cash flow using the...
-
Explain how the scope of things included in consolidated statements has gradually grown over time under IFRS and US GAAP.
-
Assume that you provide your services in a company as its HR representative. You must now create the Code of Conduct manual for the company. Keep the information you have learned during the previous...
-
Suppose 8 = 1/3. Before the game starts, you tell the players that you will offer each of them money m > 0 at each period both of them cooperate. The new per period payoff matrix is as follows: D...
-
Question 2: You are advising a sugar trader on the hedging of the stocks of sugar the trader holds currently to sell after two months. Based on this, answer the following questions. (5 marks each) A....
-
An exciting and urgent engineering challenge in the decades immediately ahead is to responsibly meet our national power needs. The challenge has its roots in the declining economically recoverable...
-
Question 5 [10 marks]: Use divide-and-conquer strategy to design a recursive algorithm to find the largest number in a nonempty sequence of n numbers.
-
Given a power utility function \(u(x)=\frac{x^{1-a}}{1-a}\), for \(a>0\), and a random variable \(\tilde{x}\) such that \(\log \tilde{x}\) is distributed as a Normal \(\mathscr{N}\left(\mu,...
-
Write the binomial probability in words. Then, use a continuity correction to convert the binomial probability to a normal distribution probability. P(x 110)
-
You are given the following information about a European call option. The current stock price is $35. The exercise price is $40. The option matures in 6 months. The expected return on the stock...
-
Name two working capital accounts that represent sources of cash for the firm.
-
Explain the difference between cash flows from financing and investment activities.
-
Explain how the four financial statements are related.
-
What logic gate does this represent (reduce it) Do D
-
What basic logic gate does this implement? a b in out Not otb E in Not O out nota And out aAndNotb out Or out b notAndb a out And b
-
Design a Fuzzy system to reduce effect of impulse noise on a noisy image with intensities ranging from [0, L-1]. Let zs denotes the intensity of middle pixel of the neighborhood. The output intensity...
Study smarter with the SolutionInn App