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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3.8 Ratings (502 Votes)

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