The Moore Corporation had operating income (EBIT) of $800,000. The company's depreciation expense is $240,000. Moore...

The Moore Corporation had operating income (EBIT) of $800,000. The company's depreciation expense is $240,000. Moore is 100% equity financed, and it faces a 35% tax rate.

What is the company's net income?
$

Assuming no changes to any of the Balance Sheet accounts, what is its net cash flow?
$

Expert Solution

EBIT	800,000
Less:tax@35%(800,000*35%)	280,000
Net income	$520,000

b.Net cash flow=Net income+Depreciation

=(520,000+240,000)=$760,000.

jeff jeffy answered 2 years ago

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The Moore Corporation had operating income (EBIT) of $800,000. The company's depreciation expense is $240,000. Moore...

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