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    Calculation of interest expense & depreciation

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    If a company has an operating income of $700,000, net income of $200,000 and net cash flow after taxes of $450,000 and is in the 50% tax bracket, what combination of interest expense and depreciation expense would the company have?

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    dear student,

    Income from operations $700,000
    Interest expense 300,000
    Income before ...

    Solution Summary

    The answer contains the computation of interest expense and depreciation when net operating income, net income and net cash flows are given