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Ostrovityanka [42]
3 years ago
5

A proposed new project has projected sales of $195,000, costs of $92,000, and depreciation of $25,200. The tax rate is 25 percen

t. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)
Operating cash flow
EBIT +Depreciation - Taxes 58,800
Top-down
Tax-shield
Bottom-up
Business
1 answer:
rusak2 [61]3 years ago
5 0

Answer:

EBIT + Depreciation - Tax

= (195000-92000-25200) + 25200 - 19450

= $83,550

Top down OCF = EBIT - (EBIT * Tax) + Depreciation  

Top down OCF = (195000-92000-25200) - ((195000-92000-25200) * 0.25) +25200

Top down OCF = 77800 - 19450 + 25200

Top down OCF = $83,550

Tax shield OCF = (Sales - Exp) (1-tax) + (Dep * tax)  

Tax shield OCF = (195000-92000) (1-0.25) + (25200 * 0.25)  

Tax shield OCF = 77250 + 6300

Tax shield OCF = 83550

Bottom Up OCF = Net Income + Dep

Bottom Up OCF = (77800 * (1-0.25) + 25200

Bottom Up OCF = 83550

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Hope this helped

6 0
3 years ago
20 out of 45 men surveyed liked beef. What percentage of men did NOT like beef? (Round up to nearest %.)
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3 years ago
According to CEO Heidi Ganahl, Camp Bow Wow requires a strong and consistent corporate culture to keep all local franchise owner
geniusboy [140]

Answer:

The correct answer is letter "A": are inflexible and incapable of adapting to environmental change.

Explanation:

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4 0
3 years ago
Artisanâ Inspiration, Inc. is a merchandiser of stone ornaments. The company sold 6 comma 500 units during the year. The company
aliina [53]

Answer:

206,000

Explanation:

Sales                                             = 590000  

- CGS                                           = 302000  

Gross profit                                                                       = 288,000

Less Operating Expenses:

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Operating Income                                                               =         206,000

CGS = Beginning inventory + Purchases - Ending Inventory

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5 0
3 years ago
A journal designed for entering only sales on account is called the
grandymaker [24]
The answer to the question stated above is letter c. <span>sales journal.
</span>
Sales journals<span> are used for recording sales of merchandise on account, it is sometimes termed as credit sales.
 Cash sales are </span>not recorded on <span>Sales journal  because </span><span>they belong in the </span>cash receipts journal.
6 0
3 years ago
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