Consider the following income statement: Sales ........................$537,200 Costs .........................346,800 Depreciation ..............94,500 EBIT...................................? Taxes (21%)......................? Net income......................? Fill

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Consider the following income statement:
Sales ........................$537,200
Costs .........................346,800
Depreciation ..............94,500

EBIT...................................?
Taxes (21%)......................?
Net income......................?

Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield?

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Essentials of Corporate Finance

ISBN: 978-1260013955

10th edition

Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan

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Question Posted: Nov 27, 2019 06:41 AM

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Consider the following income statement: Sales ........................$537,200 Costs .........................346,800 Depreciation ..............94,500 EBIT...................................? Taxes (21%)......................? Net income......................? Fill

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To find the OCF we need to complete the income statement as follow...View the full answer

Essentials of Corporate Finance

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