Ask Experts Questions for FREE Help !
Ask
    naidra's Avatar
    naidra Posts: 5, Reputation: 1
    New Member
    		  
    #1

    Jan 17, 2009, 08:04 PM
    simple and quick?
    Ok--I've been struggling with this problem all day.

    I have values for EBIT (750,000), depreciation (200,000), and the tax rate(.4). I need to find net income and net cash flow.

    Here's what I have so far: net cash flow = net income + depreciation. If depreciation is given, how am I supposed to get net income and net cash flow? No other information was given.
    bash10's Avatar
    bash10 Posts: 10, Reputation: 3
    New Member
    		  
    #2

    Jan 17, 2009, 08:26 PM
    It's difficult to determine that answer.

    In your income statement, depreciation helps to make up the EBIT. If you know the interest take that out next. This will make your taxable income. From there, deduct your total taxes to find the Net Income.

    Then you know that your Net Cash Flow = Net Income + Depreciation/Amortization

    Hope this helps.
    naidra's Avatar
    naidra Posts: 5, Reputation: 1
    New Member
    		  
    #3

    Jan 17, 2009, 08:53 PM
    Thanks for your help, but that's exactly where I got stuck. The only useful information that I have is the equation for net cash flow, but there are 2 missing variables : net cash flow and net income.

    Depreciation is 200,000
    EBIT is 750,000
    and the tax rate is .4

    So, hence, the stuckness (lol).

    Thanks again!
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

This is not simple is it? [ 7 Answers ]

Whenever something makes a wrong, I want too right it, But whenever I try too speak out, It feels like someone has grabbed my throat, And is SQUEEZING THE OUT OF IT. Whenever my sibling makes an unjust statement, That has obviously been pulled out their arse, That little socially...

Simple toy [ 2 Answers ]

Hi! I need the name to a simple toy that was around in the 1970's. It's a bb size ball bearing encased in a clear plastic cylander. The idea of the toy is to make the bb travel up a spiral ledge and drop into a notch at the top of the spiral simply by using wrist action and a steady hand. Thanks.

Divorce needed quick and simple [ 1 Answers ]

I need to know where to get the form I need to fill out for a divorce in Arkansas. I have been separated from my husband for over a year .I moved out when I found out that he was seeing some one else and he got fired from his job and had no desire to find another one. I was not about to support him...

View more questions Search