thank you FINDING OPERATING CASH FLOWS: . Bottom Up Approach:...

50.1K

Verified Solution

Question

Finance

thank you
image
FINDING OPERATING CASH FLOWS: . Bottom Up Approach: OPERATING CASH FLOW NET INCOME + DEPR (works If no interest expense) Standard Approach: OPERATING CASH FLOW - (EDIT + DEPR - TAXES) Top - ) Tax Shield Approach: OPERATING CASH FLOW = (SALES - COSTS)(1-TAX RATE) + (DEPR TAX RATE) 4. Hot and Cold Company has a project that will generate annual sales of $982,000 with expenses of $350,00, depreciation of $127,000, and a tax rate of 21%. There is no interest expense. Find the OCF using the four different methods. Show your work. INCOME STATEMENT a) standard method b) bottom up method c) top down method d) tax shield approach

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students