Question: Assume a corporation has earnings before depreciation and taxes of $104,000, depreciation of $42,000, and that it has a 30 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 $16,000 in depreciation? All other factors are the same.
c. How much cash flow is lost due to the reduced depreciation from $42,000 to $16,000?