Sales $ 643,700 Costs 384,300 Depreciation 136,500 ЕBIT Taxes (25%) Net income 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.) b. OCF с. Depreciation tax shield

Accounting
27th Edition
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Chapter21: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 21.18EX
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Problem 9-4 Calculating OCF [LO 2]
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
643,700
Costs
384,300
Depreciation
136,500
EBIT
Taxes (25%)
Net income
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.)
b.
OCF
C.
Depreciation tax shield
Transcribed Image Text:Problem 9-4 Calculating OCF [LO 2] 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 643,700 Costs 384,300 Depreciation 136,500 EBIT Taxes (25%) Net income 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.) b. OCF C. Depreciation tax shield
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