a. Set up an income statement. What is Berndt's expected net cash flow? Enter your answer in dollars. For example, an answerof $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar.$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.$c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndt's depreciation, it was reduced by50%. What is Berndt's expected net cash flow? Round your answer to the nearest dollar.$d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? The Berndt Corporation expects to have sales of $12 million. Costs other than depreciation are expected to be 60% of sales, anddepreciation is expected to be $2.4 million. All sales revenues will be collected in cash, and costs other than depreciation must bepaid for during the year. Brendt's federal-plus-state tax rate is 40%. Berndt has no debt. The data has been collected in theMicrosoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.XOpen spreadsheet

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The Berndt Corporation expects to have sales of $12 million. Costs other than depreciation are expected to be 60% of sales, and depreciation is expected to be $2.4 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 40%. 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.

The Berndt Corporation expects to have sales of $12 million. Costs other than depreciation are expected to be 60% of sales, and depreciation is expected to be $2.4 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 40%. 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.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 11P: The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are...

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