Business

Cash Flow problem

A Corporation has operating income (EBIT) of $750,000. The company's depreciation expense is $200,000. The company is 100 percent equity financed and it faces a 40 percent tax rate.
a. What is the company's net income?

b. What is its cash flow?

cdlspivey Sun 23/03/08 03:42

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fredpuli47
Sun 23/03/08
23:42

Apart from this sounding like a homework question you have posted it on a British based site (which is why the address ends 'uk'). It's obvious, from your use of $ not £ (pound sterling) and the word 'corporation' for company, that you are in North America :)Your question may seem straightforward but is best addressed to a US site (and what's EBIT ?)

zuki84
Thurs 27/03/08
21:27

agreed better on a U.S. site, and looks like a homework question -

but to fredpuli, 'EBITI' is 'earnings before interest and tax'

redheadisbac
Thurs 27/03/08
21:30

get off ur high horses instead of being so rude to the poster

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