A proposed new project has projected sales of $222,000, costs of $96,500, and depreciation of $26,100. The tax rate is 24 percent. Calculate operating cash flow using the four different approaches. (Do not round intermediate calculations.)A. EBIT+Depreciation-TaxesB. Top-DownC. Tax-ShieldD. Bottom-Up

See explanation

Explanation:

Sales = $222,000

Less: Cost = $96,500

Less: Depreciation = $26100

EBIT = $99400

Less: Tax = 24% × $99400 = $23856

Net income = $75544

A. EBIT+Depreciation-Taxes

EBIT = $99400

Add: Depreciation = $26100

Less: Tax = $23856

Operating cashflow = $101644

B. Top-Down

= EBIT(1 - t) + Depreciation

= $99400(1 - 0.24) + $26100

= $75544 + $26100

= $101644

C. Tax-Shield

= (Sales - Cost)(1-t) + Depreciation (t)

= ($222000 - $96500)(1 - 0.24) + $26100(0.24)

= ($125500 × 0.76) + $6264

= $95380 + $6264

= $101644

D. Bottom-Up

= Net income + Depreciation

= $75544 + $26100

= $101644

i would go with get a bachelor’s degree

hope i

-lavira : )

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough