21 Delta began business in 2015 and reported a $100.000 Net Operating Loss (NOL) for the current year. It has no permanent or temporary differences; thus, its taxable loss equals its book loss of $100,000. Delta will carry forward its $100,000 NOL to future years. The tax rate is 40%. What is the JE for 2015 I.T. Expense? 22) How much is 2015 Net Income? 23) Using the information from above, now assume that, in 2016, Delta decides to apply (use up) the DTA (carryforward). The company has book income of $200,000. No book/tax differences. So, Delta reports taxable income of $200,000 before considering the effect of its NOL. What is the 2016 JE for I.T Expense? 24) Sigma reported $100 Net Income for the year. Included in net income was a gain on sale of PP&E of $6. Depreciation expense was $30. Accounts receivable increased by $10. Accounts payable increased by $7. Inventory decreased by $12. Prepaid assets increased by $15. How much were net cash flows from operating activities for the year? During the year, Delta made a cash purchase of equipment for $100. It sold a building for $500. The building had had a book value on Delta's book of $550 at the time of the sale. It purchased stock in Alpha for stock in Alpha for $100. It sold its investment in Gamma for $800 (which had had a book value of $500). During the year, it split its stock 2-for-1. 25) How much are cash flows from investing activities for the year? For the year, Sigma issued 10 shares of common stock for $35 each and 20 shares of preferred stock for $25 each. It issued 10%, $200 face value bonds for $190. In addition, it retired bonds at a cost of $150 (the book value of the bonds at retirement was $1 shareholders and total cash dividends to preferred shareholders of $80. It paid cash interest of $35 on its debt 26) How much are cash flows from financing activities for the year