Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company had the following items on its 2020 annual income statement: Revenues900,000 Labor expense100,000 Material expense200,000 Depreciation expense80,000 In addition, the company borrowed $250,000

A company had the following items on its 2020 annual income statement:

Revenues900,000

Labor expense100,000

Material expense200,000

Depreciation expense80,000

In addition, the company borrowed $250,000 at the beginning of 2019, to be repaid with equal total payments, over10 years, at 6% annual interest.

  • What is the loan interest payment in 2020?What is the loan principal payment in 2020? (Enter two numerical values in the answer field, and separate them by a space.)
  • federal corporate tax rate of 21%, compute the "Profit after tax." (Enter one numerical value in the data field.You may round to the nearest dollar.)
  • compute the Cash flow after tax, interest, and principal.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Law And The Legal Environment

Authors: Jeffrey F Beatty, Susan S Samuelson

4th Edition

0324303971, 9780324303971

More Books

Students also viewed these Economics questions