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Homework answers / question archive / Assume a corporation has earnings before amortization and taxes (EBAT) of $108,000 and amortization of $46,000, and it has a 35 percent tax rate

Assume a corporation has earnings before amortization and taxes (EBAT) of $108,000 and amortization of $46,000, and it has a 35 percent tax rate

Finance

Assume a corporation has earnings before amortization and taxes (EBAT) of $108,000 and amortization of $46,000, and it has a 35 percent tax rate. 
Compute its cash flow. (Input all answers as positive values.) 
:46 Earnings before amortization and taxes  Amortization 
Earnings before taxes Taxes @ 35% 
Earnings after taxes Amortization 
Cash flow 

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Computation of Cash Flow:  
Earnings before Amortization and Taxes (EBAT) 108,000
Less: Amortization 46,000
Earnings before taxes 62,000
Less: Taxes@35% 21700
Earnings after taxes 40,300
Add: Amortization 46,000
Cash Flow 86,300