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| Teaching Since: | May 2017 |
| Last Sign in: | 432 Weeks Ago, 4 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Problem 9-3 Calculating Projected Net Income [LO 2]
| A proposed new investment has projected sales of $830,000. Variable costs are 55 percent of sales, and fixed costs are $187,200; depreciation is $93,500. Assume a tax rate of 40 percent. |
| Required: |
| What is the projected net income? (Do not round intermediate calculations.) |
| Net income | $ |
Problem 9-4 Calculating OCF [LO 2]
| Requirement 1: |
| Fill in the missing numbers in the following income statement: (Do not round intermediate calculations.) |
| Sales | $ | 644,300 |
| Costs | 345,800 | |
| Depreciation | 96,500 | |
| EBIT | $ | |
| Taxes (40%) | ||
| Net income | $ | |
| Requirement 2: |
| What is the OCF? |
| OCF | $ |
| Requirement 3: |
| What is the depreciation tax shield? |
| Depreciation tax shield | $ |
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