A company has the following value on its annual tax return.

 Cash flows Company

Sales revenues, $ $1,500,000$

Interest revenues, $ $31,000$

Expenses, $ $-754,000$

Depreciation, $ $148,000$

$1.$ Calculate the net income.

$2.$ Calculate the federal income tax for the year.

$3.$ Estimate the effective rate $($Te$)$ of $34\%$ federal tax and $6\%$ state tax.

$4.$ Bring this ATCF $3$ years into the future to the present.

$$311,901$ 

$$496,484$

$$349,467$ 

$$347,483$

$5.$ Estimate the ATCF of that year.

$$415,140$ 

$$660,820$ 

$$465,140$

$$462,500$