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Brilliant_brown [7]
2 years ago
13

Fill in the missing numbers for the following income statement. (Input all amounts as positive values. Do not round intermediate

calculations.)
Sales Costs Depreciation EBIT Taxes (22%) Net income 747,300 582,600 89,300
a. Calculate the OCF. (Do not round intermediate calculations.)
b. What is the depreciation tax shield? (Do not round intermediate calculations.)
a. OCF
b. Depreciation tax shield
Business
1 answer:
Strike441 [17]2 years ago
5 0

Answer: See explanation

Explanation:

Sales = 747300

Less: Costs = 582600

Less: Depreciation = 89300

EBIT = 75400

Less: Taxes at 22% = 22% × 75400 = 16588

Net income = EBIT - Taxes = 75400 - 16588 = 58812

a. Calculate the OCF.

OCF will be calculated as:

= Net income + Depreciation

= 58812 + 89300

= 148,112

b. What is the depreciation tax shield?

Depreciation tax shield will be:

= Depreciation × Tax rate

= 89300 × 22%

= 89300 × 0.22

= 19646

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The type of business that the uncle is said to have would be described as an entrepreneurial business.

<h3>What is an entrepreneurship?</h3>

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The question says that the uncle has a chain of these businesses across three states, we can say that the uncle is an entrepreneur.

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2 years ago
On September 30, Silver Corporation, a calendar year taxpayer, sold a parcel of land (basis of $400,000) for a $1 million note.
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Answer:

Sam must report $700,000 distribution from Silver on his Income report.

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6 0
3 years ago
The Sisyphean Company is considering a new project that will have an annual depreciation expense of $ 4 million. If​ Sisyphean's
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