Question

1)Assume a corporation has earnings before depreciation and taxes of $117,000, depreciation of $45,000, and that it has a 35 percent tax bracket.
 a.Compute its cash flow using the following format. (Input all answers as positive values.)
 
     Earnings before depreciation and taxes$     Depreciation     Earnings before taxes$     Taxes     Earnings after taxes$     Depreciation     Cash flow$    
 b.How much would cash flow be if there were only $11,000 in depreciation? All other factors are the same.
 
   Cash flow$   
 c.How much cash flow is lost due to the reduced depreciation from $45,000 to $11,000?
 
   Cash flow lost$

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