Answer:
Forecasted earning = $160,200
Tax rate = 27.84%
Step-by-step explanation:
The calculation of forecasted earning and tax rate is shown below:-
Earnings before income and taxes = Sales - Cost of goods sold - Depreciation Expense
= $1,362,000 - $830,000 - $310,000
= $222,000
So,
Forecasted Free cash flow = Net Income + Depreciation
$470,200 = Net Income + $310,000
Net Income = $470,200 - $310,000
= $160,200
Now, the Tax rate is
Net Income = EBIT × (1 - Tax Rate)
$160,200 = $222,000 × (1 - Tax rate)
(1 - Tax rate) = $160,200 ÷ $222,000
(1 - Tax rate) = 0.721622
Tax rate = 27.84%
