Assume a corporation has earnings before depreciation and

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Assume a corporation has earnings before depreciation and taxes of $116,000 depreciation of $44,000 and is in a 30 percent tax bracket.

(a) How much would cash flow be if there were only $13,000 in depreciation? All other factors are the same.

(b) How much cash flow is lost due to the reduced depreciation between $44,000 and $13,000?

Reference no: EM13569680

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