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12-4 [8 pts] Assume a corporation has earnings before depreciation and taxes of $90,000, depreciation of $40,000, and a 30 percent tax bracket....

 

12-4      [8 pts] Assume a corporation has earnings before depreciation and taxes of $90,000, depreciation of $40,000, and a 30 percent tax bracket. Compute its cash flow using the following format: 


Earnings before depreciation and taxes               _____

Depreciation                                                           _____

Earnings before taxes                                             _____

Taxes @ 30%                                                          _____

Earnings after taxes                                                  _____

Depreciation                                                              _____

Cash flow                                                     

Top Answer

Earnings before depreciation and taxes ' 90,000 Depreciation... View the full answer

3 comments
  • how do you calculate depreciation and cash flow?
    • athenabryant4
    • Apr 03, 2018 at 7:59pm
  • Depreciation is given directly , Cash Flow = Earning after taxes plus Depreciation
    • rocky4ever
    • Apr 03, 2018 at 8:01pm
  • Please let me know if you are still having any doubt
    • rocky4ever
    • Apr 03, 2018 at 8:02pm

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