Excel Online Structured Activity:

File Home Insert Formulas Data Review View Help Tell me what you want to do Editing P Comments TV Calibri 12 B av ab General 60 .00 .00 ->0 H - 27 Ev Tv Ov ... L20 fx A B C D E F H 1 j M N P Q R S T U V w Y z AB AC AD AE AF AG 3 Screen Shot 2021-03-21 at 8.53.06 PM Q G a Formulas Excel Online Structured Activity: Income and Cash Flow Analysis #NA #NA o The Berndt Corporation expects to have sales of $13 million. Costs other than depreciation are expected to be 60% of sales, and depreciation is expected to be $2.6 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Brendt's federal-plus-state tax rate is 35%. Berndt has no debt. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. #N/A WNA #N/A #N/A Open spreadsheet a. Set up an income statement. What is Berndt's expected net cash flow? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar. $13,000,000 #N/A $ #N/A 0 Cash sales $13,000,000 4 Costs other than depreciation as % 60.00% 5 Depreciation $2,600.000 6 Federal plus state tax rate 35.00% 7 Interest SO 8 9 Income Statement: 10 Sales $13,000,000 11 Costs except depreciation 12 Depreciation 2,600,000 13 Earnings before interest and taxes (EBIT) 14 Interest 15 Pre-tax earnings SO 16 Taxes 17 Net income 18 19 Net Cash Flow: : 20 Net Income 21 Depreciation 2,600,000 22 Net cash flow 23 24 Original Depreciation Doubled $5,200,000 25 26 Income Statement 27 Sales 28 Costs except depreciation 29 Depreciation 5,200.000 30 Earings before interest and taxes (EBIT) 31 Interest 0 32 Pre-tax earnings $0 33 Taxes 34 Net Income 35 36 Net Cash Flow: 37 Net Income 38 Depreciation 5,200.000 39 Net cash flow 40 41 Original Depreciation Halved $1,300.000 42 43 Income Statement: 44 Sales $13,000000 45 Costs except depreciation 1.300.000 46 Depreciation 47 Earnings before interest and taxes (EBIT) 48 Interest 49 Pre-tax earnings $0 50 Taxes 51 Net income 52 53 Net Cash Flow 54 Net Income 55 Depreciation 1,300.000 56 Net cash flow 57 Would you prefer depreciation to be 58 doubled or halved? 50 b. Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What Is Berndt's expected net cash flow? Round your answer to the nearest dollar. #N/A #N/A $ #NA C. Now suppose that Congress changed the tax laws such that, instead of doubling Berndt's depreciation, it was reduced by 50%. What is Berndt's expected net cash Is flow? Round your answer to the nearest dollar. #N/A $ d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? #NA #NA #N/A #NA #N/A #N/A #NA