Question

Fill in the missing numbers for the following statement of
comprehensive income. **(Input all amounts as positive
values. Omit $ sign in your response.)**

Sales | $ | 728,500 | |

Costs | 501,800 | ||

Depreciation | 88,900 | ||

EBIT | $ | ||

Taxes (34%) | |||

Net income | $ | ||

Calculate the OCF.

OCF $

What is the CCA tax shield?

CCA tax shield
$

Answer #1

Operating Cash Flow =Net Income+Non cash expenses -Increase In working Capital(here increase in working capital =0)

or Sales -Costs -tax (answer will be the same in both cases)

Net Income=Sales -COGS-Fixed Expenses(depreciation)-Taxes

Particulars | Amount |

Sales | 728,500 |

COGS | 501,800 |

Gross profit | 226700 |

Less Depreciation | 88900 |

EBIT | 137800 |

Less Tax@34% | 46852 |

Net Income | 90948 |

Net Income =$90,948

Depreciation(non cash expense) =$88,900

**Operating Cash flow**(OCF)
=$90,948+88,900**=179,848**

CCA tax shield =Depreciation expense *tax rate

tax rate =34%

Depreciation=$88,900

**CCA tax shield**
=$88,900*34%=**30,226**

Fill in the missing numbers for the following income statement.
(Do not round intermediate calculations.)
Sales
$662,600
Costs
424,300
Depreciation
100,700
EBIT
Taxes (24%)
Net income
b.
Calculate the OCF. (Do not round intermediate
calculations.)
c.
What is the depreciation tax shield? (Do not round
intermediate calculations.)
b.
OCF
c.
Depreciation tax
shield

Fill in the missing numbers for the following income
statement.
sales
663200
cost
425000
depreciation
101000
EBIT
taxes (25%)
net income
Calculate the OCF.
What is the depreciation tax shield?

a.
Fill in the missing numbers in the following income statement:
(Do not round intermediate calculations and round your
answers to the nearest whole number, e.g. 32.)
sales = $565,600
costs = $356,800
Depreciation= $105,700
Ebit = ?
Taxes (24%) =?
net Income = ?
What is the EBIT, taxes at 24%, and net income?

a.
Fill in the missing numbers in the following income statement:
(Do not round intermediate calculations and round your
answers to the nearest whole number, e.g. 32.)
b.
What is the OCF? (Do not round intermediate
calculations and round your answer to the nearest whole number,
e.g. 32.)
c.
What is the depreciation tax shield? (Do not round
intermediate calculations and round your answer to the nearest
whole number, e.g. 32.)

Consider the following income statement:
Sales $ 784,664
Costs 510,496
Depreciation 116,100
Taxes 34 % Required:
(a ) Calculate the EBIT.
(b ) Calculate the net income.
(c ) Calculate the OCF.
(d ) What is the depreciation tax shield?

Consider the following income statement:
Sales
$ 985,392
Costs
641,088
Depreciation
145,800
Taxes
23 %
Calculate the EBIT.
Calculate the net income.
Calculate the OCF.
What is the depreciation tax shield?

Consider the following income statement Sales $ 912,000 Costs
593,600 Depreciation 135,000 Taxes 24 %
(a ) Calculate the EBIT
(b ) Calculate the net income.
(c ) Calculate the OCF.
(d ) Calculate the depreciation tax shield.

Consider the following income statement: Sales $ 894,152 Costs
581,728 Depreciation 132,300 Taxes 32 % Required: (a ) Calculate
the EBIT. (b ) Calculate the net income. (c ) Calculate the OCF. (d
) What is the depreciation tax shield?

Consider the following income
statement:
Sales
$ 766,416
Costs
498,624
Depreciation
113,400
Taxes
31 %
Required:
(a )
Calculate the EBIT.
(Click
to select)162,112154,392146,672149,760159,024
(b )
Calculate the net income.
(Click to
select)109,726103,334101,204106,530111,857
(c )
Calculate the OCF.
(Click to
select)106,530315,654230,927219,930208,934
(d )
What is the depreciation tax
shield?
(Click to
select)34,09933,39635,154113,40036,912

Consider the following simplified financial statements for the
Steveston Corporation (assuming no income taxes):
Statement of Comprehensive Income
Statement of Financial Position
Sales
$
32,000
Assets
$
25,300
Debt
$
5,800
Costs
24,400
Equity
19,500
Net income
$
7,600
Total
$
25,300
Total
$
25,300
Steveston has predicted a sales increase of 15 percent. It has
predicted that every item on the statement of financial position
will increase by 15 percent as well.
Create the pro forma statements and...

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