Fill in the missing numbers in the following income statement: (Do not round intermediate calculations and round your answers to the nearest whole number, e. g. 32.)

Sales $ 644,800

Costs 346,300

Depreciation 97,000

EBIT $

Taxes (30%)

Net income $

What is the OCF? (Do not round intermediate calculations and round your answer to the nearest whole number, e. g. 32.)

What is the depreciation tax shield? (Do not round intermediate calculations and round your answer to the nearest whole number, e. g. 32.)

OCF is $238,050

Depreciation tax shield is $29,100

Explanation:

The computation of the operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,

EBIT = Sales - cost of good sold - depreciation expense

= 644,800 - $346,300 - $97,000

= $201,500

The income tax expense is

= $201,500 * 30%

= $60,450

And, the Depreciation is $97,000

Now put these values to the above formula

So, the value would equal to

= $201,500 + $97,000 - $60,450

= $238,050

The computation of the depreciation tax shield would be

= Tax rate * depreciation expense

= 30% * $97,000

= $29,100