How much would cash flow be

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Question - Assume a corporation has earnings before depreciation and taxes of $120,000, depreciation of $48,000, and that it has a 35 percent tax bracket.

a. Compute its cash flow using the following format.

b. How much would cash flow be if there were only $12,000 in depreciation? All other factors are the same.

c. How much cash flow is lost due to the reduced depreciation from $48,000 to $12,000?

Reference no: EM132607336

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