A proposed new project has projected sales of $189,000, costs of $91,000, and depreciation of $25,000....

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Finance

A proposed new project has projected sales of $189,000, costs of$91,000, and depreciation of $25,000. The tax rate is 23 percent.Calculate operating cash flow using the four different approaches.(Do not round intermediate calculations.)
EBIT+ DEPRICIATION-TAXES
TOP-down
TAX-shield
bottom-up

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Approach Operating Cash Flow EBIT Depreciation Taxes 81210 Topdown 81210 Taxshield 81210 Bottomup 81210 Workings Income Statement Income Statement Particulars Amount Sales 189000 Less Costs 91000 See Answer

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A proposed new project has projected sales of $189,000, costs of$91,000, and depreciation of $25,000. The tax rate is 23 percent.Calculate operating cash flow using the four different approaches.(Do not round intermediate calculations.)EBIT+ DEPRICIATION-TAXESTOP-downTAX-shieldbottom-up

A proposed new project has projected sales of $189,000, costs of $91,000, and depreciation of $25,000....

50.1K

Verified Solution

Question

Finance

A proposed new project has projected sales of $189,000, costs of$91,000, and depreciation of $25,000. The tax rate is 23 percent.Calculate operating cash flow using the four different approaches.(Do not round intermediate calculations.)
EBIT+ DEPRICIATION-TAXES
TOP-down
TAX-shield
bottom-up

Answer & Explanation Solved by verified expert

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