Requirement 1 Fill in the missing numbers in the following i

Requirement 1: Fill in the missing numbers in the following income statement (Do not round intermediate calculations.) Sales Costs Depreciation 760,000 427,000 103,000 EBIT Taxes (34%) Net income Requirement 2: What is the oCF? (Do not round intermediate calculations.) OCF Requirement 3 What is the depreciation tax shield?(Do not round in Depreciation tax shield

Solution

1.

Sales

$ 760,000

Costs

$ 427,000

Depreciation

$ 103,000

EBIT

$ 230,000

Taxes (34%)

$ 78,200

Net income

$ 151,800

2.

OCF = Net income + Depreciation = $151,800 + $103,000 = $254,800

3.

Depreciation tax shield = Depreciation * Tax rate = $103,000 * 34% = $35,020

Sales	$ 760,000
Costs	$ 427,000
Depreciation	$ 103,000
EBIT	$ 230,000
Taxes (34%)	$ 78,200
Net income	$ 151,800