Cash Flow Exercises_2_

Cash Flow Exercises_2_ - -Book Depreciation $6,000,000...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
1. Revenues $37,000,000 -Expenses $23,000,000 -Book Depreciation $6,000,000 Tax Depreciation $8,000,000 = Operating Income $8,000,000 -Book Taxes @ 50% $4,000,000 = Net Income $4,000,000 Cash Flow Net Income $4,000,000 +Book Depreciation $6,000,000 +Deferred Taxes $1,000,000 $11,000,000 Deferred Taxes Tax Depreciation $8,000,000
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: -Book Depreciation $6,000,000 $2,000,000 X Tax Rate (50%) $1,000,000 2. Using same data from 1: Revenues $37,000,000-Expenses 23,000,000-Tax Depreciation 8,000,000 =Taxable Income 6,000,000 X Tax 50% Rate = Current taxes 3,000,000 3,000,000 + Tax Depreciation 8,000,000 = Cash Flow 11,000,000 Same result as in 1...
View Full Document

This note was uploaded on 03/11/2010 for the course CEVE 322 taught by Professor Segner during the Spring '10 term at Rice.

Ask a homework question - tutors are online