Homework Answers
HI
If operating cost decreased by $37,000
then change in EBITDA = $37,000
change in EBIT = EBITDA- Depreciation
= $37,000 - 2750
= $34,250
Tax = EBIT*t
= 34250*21%
= $7,192.5
Change in Net Income = 34250 - 7192.5 = $27,057.50
Change in Operating cash flow = Change in net income +depreciation
= 27057.50 + 2750
= $29,807.50
Hence last option is correct answer here.
Thanks
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