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Assume a corporation has earnings before
Earnings before depreciation and taxes
Depreciation
Earnings before taxes
Taxes @ 30%
Earnings after taxes
Depreciation
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- Assume a corporation has earnings before depreciation and taxes of $82,000, depreciation of $45,000, and that it has a 25% combined tax bracket. What are the after-tax cash flows for the company?Assume a corporation has earnings before depreciation and taxes of $145,000, depreciation of $35,000, and that it has a 30% combined tax bracket. What are the after-tax cash flows for the company? a) $112,000 Ob) $106,800 c) $116,600 Od) $115,800 0Use the following to determine FCF (Free Cash Flow) for the current year. Assume an effective tax rate of 25%: Revenue COGS (Cost of Goods Sold) Gross Profit Wages Expense Rent and Other Occupancy Expense Depreciation Expense Operating Income Current Assets Accounts Receivable Inventory Total Current Assets Gross Fixed Assets (at historical cost) less: Accumulated Depreciation Net Fixed Assets Total Assets Current Year 100,000 67,000 11,500 15,000 1,000 8,500 5,500 50,000 30,000 20,000 Prior Year 4,200 950 8,200 6,000 46,000 29,000 17,000 Current Liabilities Accounts Payable Wages Payable Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234. Show a decrease as a negative figure. Type your answer... 4,500 900
- Assume a corporation has earnings before depreciation and taxes of $126,000, depreciation of $42,000 and that it is in a 35 percent tax bracket. Compute its cash flow using the following format. (Input all answers as positive values.) C 500 Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes Earnings after taxes Depreciation Cash flow $ $ 0 0 0 Prev 1 of 9 *** MacBook Air Next >Assume a corportation has earnings before depreciation and taxes of $100,000, depreciation of $50,000, and is in a 30% percent tax bracket. Compute its cash flow using the format. Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes @ 30% Earnings after taxes Depreciation 2a) In problem 1 , how much would cash flow be if there were only $10,000 in depreciation ? All other factors are the same. 2b) How much cash flow is lost due to the reduced depreciation between Problems 1 and 2a?The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $15,000, respectively. What is the after-tax cashflow if the effective income tax rate is 23%? O a. $75,460 O b. $63,910 O c. $19,090 O d. $78,910 O e. $60,460
- 4. Assume a firm has earnings before depreciation and taxes of $400,000 and depreciation of $100,000. a. If the firm is in a 35 percent tax bracket, compute its cash flow. b. If it is in a 20 percent tax bracket, compute its cash flow.Using the financial statements mentioned above estimate the annual rate of interest paid by the corporation (cost of debt). Also, find the tax rate and capitalization ratio (proportions among equity and debt). Using these values that you have found estimate the annual weighted cost of capital (WACC) of the corporation.Use the following information to build an income statement and answer the following question: Sales of $760,000, current assets of $5,400,000 net fixed assets of $28,100,000, and long-term debt of $10,600,000, costs of $316,000, depreciation expense of $39,000, interest expense of $34,000, current liabilities of $4,100,000, and a tax rate of 21 percent. The firm paid out $150,000 in cash dividends and has 100,000 shares of common stock outstanding. What is the addition to retained earnings? O $143,090 O $140,000 O $145,050 O $153,000
- Benson, Inc., has sales of $44830, costs of $14,370, depreciatior and interest expense of $2,390. The tax rate if 23 percent. What is the operating cash flow, or OCF?Rhodes Corporation’s financial statements are shown after part f. Suppose the federalplus- state tax corporate tax is 25%. Answer the following questions.a. What is the net operating profit after taxes (NOPAT) for 2020?b. What are the amounts of net operating working capital for both years?c. What are the amounts of total net operating capital for both years?d. What is the free cash flow for 2020?e. What is the ROIC for 2020?f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.)Given the following information calculate the relevant annual Net Cash Flow After Tax [NCFAT], needed to calculate NPV. Forecast Annual Income $ Cash Revenue 360,000 Less Cash Operating Expenses 160,000 Admin Cash Flow Expenditure 60,000 Depreciation 36,000 Interest 24,000 Net Profit Before Tax Tax @30% 24,000 Net Profit After Tax 56,000
