1 answer

A proposed new project has projected sales of $222,000, costs of $96,500, and depreciation of $26,100....

Question:

A proposed new project has projected sales of $222,000, costs of $96,500, and depreciation of $26,100. The tax rate is 24 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)

A. EBIT+Depreciation-Taxes

B. Top-Down

C. Tax-Shield

D.Bottom-Up


Answers

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Home nert Page Layout Formulas Data Review View dd-Ins s Cut aCopy E AutoSum ー E ゴWrap Text в 1 프· ー· 鱼, Δ. :r-ㄧ 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Alignment Number Cells Edting F153 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 4 SALES COSTS DEPRECIATION EBIT TAX NET INCOME 222000 96500 26100 99400 23856 24%*99400 75544 APPROACH 1 FREE CASH FLOW APPROACH EBIT DEPRECIATION TAXES 99400 26100 23856 101644 ADD LESS APPROACH 2 TOP -DOWN APPROACH EBIT(1-t) DEPRECIATION 99400(1-0.24) 26100 101644 OCF CASH FLOW STATW ARM, MSI.confidenceINDEX / CURRENCY , LOAN (/CROSS OVER .</p><p>HEDGING MONEY MARKET / GM HPR AM . TAX GROWTH SUST PREF AND DIV POLICY , 「 .. 05:36 22-01-2019Home nert Page Layout Formulas Data Review View dd-Ins s Cut ta copy ▼ Σ AutoSum ー E ゴWrap Text в 1 프· ー· 鱼, Δ. :r-ㄧ 逻锂函Merge & Center. $, % , 弼,8 C Paste Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Alignment Number Cells Edting F162 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 1 PPROACH 1 FREE CASH FLOW APPROACH EBIT DEPRECIATION TAXES 99400 26100 23856 101644 ADD LESS PPROACH 2 TOP -DOWN APPROACH EBIT(1-t) DEPRECIATION 99400 (1-0.24) 26100 101644 APPROACH 3 TAX SHIELD APPROACH (SALES-EXPENSES) (1-t)DEPRECIATION (t) (222000-96500)*(1-0.24) 26100 (0.24)101644 PPROACH 4 BOTTOM-UP APPROACH NET INCOME DEPRECIATION 75544 26100 101644 | | OCF CASH FLOW STATW ARM, MSI.confidenceINDEX / CURRENCY , LOAN (/CROSS OVER .</p><p>HEDGING MONEY MARKET / GM HPR AM . TAX GROWTH SUST PREF AND DIV POLICY , 「 .. 05:36 22-01-2019

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