Calculate EBIT given the following information: Cash flow from assets = $24,500; operating cash flow = $8,500; depreciation = $1,000; taxes = $2,500; capital spending = ($14,000); change in net working capital = ($2,000).
A) $8,000
B) $9,000
C) $10,000
D) $11,000
E) $12,000

Question

Quizplus · Accepted Answer

EBIT = Operating Cash Flow + Depreciation + Taxes = $8,500 + $1,000 + $2,500 = $12,000.

Calculate EBIT Given the Following Information: Cash Flow from Assets