Compute cash flow using the following format » Full Grade
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Assume a corporation has earnings before depreciation and taxes of $108,000, depreciation of $46,000, and that it has a 35 percent tax bracket.
a. Compute its cash flow using the following format. (Input all answers as positive values.)
b. How much would cash flow be if there were only $14,000 in depreciation? All other factors are the same.
c. How much cash flow is lost due to the reduced depreciation from $46,000 to $14,000?
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