HomeworkLib
Question

Assume a corporation has earnings before amortization and taxes (EBAT) of $103,000 and amortization of $41,000,...

Assume a corporation has earnings before amortization and taxes (EBAT) of $103,000 and amortization of $41,000, and it has a 40 percent tax rate.

Compute its cash flow. (Input all answers as positive values.)

  

        
  Earnings before amortization and taxes $   
  Amortization      
  Earnings before taxes $   
  Taxes @ 40%   
  Earnings after taxes $   
  Amortization      
  Cash flow $   
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Earnings before amortization and taxes 103,000
Amortization 41,000
Earnings before taxes 62,000
Taxes(40%*62,000) 24800
Earnings after taxes 37200
Amortization 41,000
Cash flow 78200
0 0
Add a comment
Know the answer?
Add Answer to:
Assume a corporation has earnings before amortization and taxes (EBAT) of $103,000 and amortization of $41,000,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Assume a corporation has earnings before depreciation and taxes of $120,000, depreciation of $48,000, and that...

    Assume a corporation has earnings before depreciation and taxes of $120,000, depreciation of $48,000, and that it has a 35 percent tax bracket. a. Compute its cash flow using the following format. (Input all answers as positive values.) Earnings before depreciation and taxes Depreciation Earnings before taxes Taxes Earnings after taxes Depreciation Cash Flow b. How much would cash flow be if there were only $12,000 in depreciation? All other factors are the same. c. How much cash flow is...

  • 1. 20.00 points Assume a corporation has earnings before depreciation and taxes of $108,000, depreciation of...

    1. 20.00 points Assume a corporation has earnings before depreciation and taxes of $108,000, depreciation of $46,000 and that it is in a 35 percent tax bracket. Compute its cash flow using the following format. (Input all answers as positive values.) Eamings before depreciation and taxes Depreciation Eamings before taxes Taxes Eamings after taxes Depreciation Cash flaw

  • Cash Flow

    Assume a corporation has earnings before amortization and taxes (EBAT) of $110,000 and amortization of $48,000, and it has a 30 percent tax rate. Compute its cash flow. (Input all answers as positive values.)    Earnings before amortization and taxes$     Amortization      Earnings before taxes$     Taxes @ 30%    Earnings after taxes$     Amortization      Cash flow$   

  • Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $40,000, and a...

    Assume a corporation has earnings before depreciation and taxes of $100,000, depreciation of $40,000, and a 24 percent tax bracket a. Compute its cash flow using the following format. Earnings before depreciation and taxes Deprociation Eamings beflore taxes Taxes Earnings aftor taxes Depreciation Cash Soww b. Compute the cash flow for the company if depreciation is only $20,000. All other factors are the same. Cash flow Earrings before depreciation and taxes Earnings before taxes Taxes Earmings after taxes 166 points...

  • Assume a corporation has earnings before depreciation and taxes of $105,000, depreciation of $43,000 and that...

    Assume a corporation has earnings before depreciation and taxes of $105,000, depreciation of $43,000 and that it is in a 35 percent tax bracket. Compute its cash flow using the following format.

  • Cash flow. Assume a firm has earnings before depreciation and taxes of $200,000 and no depreciation....

    Cash flow. Assume a firm has earnings before depreciation and taxes of $200,000 and no depreciation. It is in a 40 percent tax bracket.          a.     Compute its cash flow (5 Points)          b.     Assume it has $200,000 in depreciation. Recompute cash flow (5 Points)          c.     How large a cash flow benefit did the depreciation provide (5 Points)

  • Assume a firm has earnings before depreciation and taxes of $580,000 and no depreciation. It is...

    Assume a firm has earnings before depreciation and taxes of $580,000 and no depreciation. It is in a 35 percent tax bracket. a. Compute its cash flow. b. Assume it has $580,000 in depreciation. Recompute its cash flow. c. How large a cash flow benefit did the depreciation provide?

  • Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $41,000 for...

    Interest versus dividend expense Michaels Corporation expects earnings before interest and taxes to be $41,000 for the current period. Assuming a flat ordinary tax rate of 29%, compute the firm's earnings after taxes and earnings available for common stockholders (earnings after taxes and preferred stock dividends, if any) under the following conditions: a. The firm pays $11,800 in interest. b. The firm pays $11,800 in preferred stock dividends. a. Complete the fragment of Michaels Corporation's income statement below to compute...

  • Consider a C corporation. The corporation earns $7 per share before taxes. After the corporation has...

    Consider a C corporation. The corporation earns $7 per share before taxes. After the corporation has paid its corresponding taxes, it will distribute 100% of its earnings to its shareholders as a dividend. The corporate tax rate is 35%, the tax rate on dividend income is 28%, and the personal income tax rate is set at 28%. What are the shareholder's earnings from the corporation after all corresponding taxes are paid? Note: Express your answers in strictly numerical terms. For...

  • You are a shareholder in a C corporation. The corporation earns$ 1.85per share before taxes. Once...

    You are a shareholder in a C corporation. The corporation earns$ 1.85per share before taxes. Once it has paid taxes it will distribute the rest of its earnings to you as a dividend. Assume the corporate tax rate is 40% and the personal tax rate on​ (both dividend and​ non-dividend) income is 30%. How much is left for you after all taxes are​ paid? You are a shareholder in an S corporation. The corporation earns $ 1.63per share before taxes....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT