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Computation of Cash Flow of Corporate Earnings

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Assume a corporation has earnings before depreciation and taxes of $90,000, depreciation of $40,000, and that it is in a 30 percent tax bracket. Compute its cash flow using the format below.

Earnings before depreciation and taxes. _____
Depreciation. _____
Earnings before taxes. _____
Taxes @30%. _____
Earnings after taxes. _____
Depreciation. _____
Cash Flow _____

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Solution Summary

This provides the steps to calculate the computation of cash flow.

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Assume a corporation has earnings before depreciation and taxes of $90,000, depreciation of $40,000, and that it is in a 30 percent tax bracket. Compute its ...

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