A Company Has Sales of $80,000, Costs of $48,000, Depreciation

A company has sales of $80,000, costs of $48,000, depreciation of $20,000, and a 34% tax rate. Which one of the following is the correct method of computing the operating cash flow using the
Tax shield approach?

A) ($80,000 - $48,000) (1 - .34) + ($20,000) (.34)
B) ($80,000 - $48,000) (.34) + ($20,000) (1 - .34)
C) ($80,000 - $48,000 - $20,000) - ($80,000 - $48,000 - $20,000) (1 - .35)
D) ($80,000 - $48,000 - $20,000) - ($80,000 - $48,000 - $20,000) (.35)
E) $80,000 - $48,000 - ($80,000 - $48,000 - $20,000) (.35)