Question

Fill in the missing numbers in the following income statement: (Do not round intermediate calculations and round your answers to the nearest whole number, e.g. 32.)
  

Sales	$	622,400
Costs		376,800
Depreciation		128,100
EBIT	$
Taxes (35%)
Net income	$

   
What is the OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32.)
  
OCF            $
  
What is the depreciation tax shield? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g. 32.)
  
Depreciation tax shield    

Answer 1

Income Statement
Sales	6,22,400
Less: Costs	3,76,800
Less: Depreciation	1,28,100
EBIT	1,17,500
Less: Tax at 35%	41,125
Net Income	76,375

Operating Cash Flow (OCF)

Operating Cash Flow (OCF) = Net Income + Depreciation Expenses

= $76,375 + $128,100

= $204,475

Depreciation tax shield   

Depreciation tax shield = Depreciation expenses x Tax Rate

= $128,100 x 35%

= $44,835