What is the amount of the operating cash flow for a firm with $750,000 profit before tax, $125,000 depreciation expense, and a 35% mariginal tax rate?
A. $125,000 B. $612,500 C. $425,000 D. $487,500
What is the amount of annual depreciation tax shield for a firm with $400,000 in net income, $125,000 in depreciation expense, and a 35% marginal tax rate?
A. $125,000 B. $43,750 C. $275,000 D. $75,000
What is the net effect on a firm's working capital if a new project requires $400,000 increase in inventory, $150,000 icrease in accounts recievable, $325,000 increase in machinery, and a $200,000 increase in accounts payable?
A. $0 B. $350,000 C. $400,000 D. $550,000