Question

Fill in the missing numbers for the following statement of comprehensive income. (Input all amounts as...

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           $

Homework Answers

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

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Fill in the missing numbers for the following income statement. (Do not round intermediate calculations.) Sales...
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...
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...
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?
Consider the following income statement: Sales $ 784,664 Costs 510,496 Depreciation 116,100 Taxes 34 % Required:...
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?
a. Fill in the missing numbers in the following income statement: (Do not round intermediate calculations...
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 $ 985,392          Costs 641,088          Depreciation 145,800        &
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...
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:...
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        &
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...
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...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT