Question
After-Tax Cash Flows For each of the following independent situations, compute the net after-tax cash flow amount by subtracting cash outlays for operating expenses and
After-Tax Cash Flows For each of the following independent situations, compute the net after-tax cash flow amount by subtracting cash outlays for operating expenses and income taxes from cash revenue. The cash outlay for income taxes is determined by applying the income tax rate to the cash revenue received less the cash and noncash (depreciation) expenses.
A | B | C | |
---|---|---|---|
Cash revenue received | $78,000 | $398,000 | $198,000 |
Cash operating expenses paid | 42,900 | 258,700 | 118,800 |
Depreciation on tax return | 11,700 | 39,800 | 19,800 |
Income tax rate | 30% | 40% | 20% |
Do not use negative signs with any of your answers below.
A | B | C | |
---|---|---|---|
Cash revenue | Answer | Answer | Answer |
Cash outlays: | |||
Operating expenses | Answer | Answer | Answer |
Income taxes | Answer | Answer | Answer |
Total cash outlays | Answer | Answer | Answer |
Net after-tax cash flow | Answer | Answer | Answer |
Assigning Traceable Fixed Expenses Selected data for Colony Company, which operates three departments, follow:
Department A | Department B | Department C | ||
---|---|---|---|---|
Inventory | $30,000 | $108,000 | $42,000 | |
Equipment (average cost) | $270,000 | $162,000 | $108,000 | |
Payroll | $607,500 | $540,000 | $202,500 | |
Square feet of floor space | 27,000 | 13,500 | 4,500 |
During the year, the company's fixed expenses included the following:
Depreciation on equipment | $45,000 | |||
Real estate taxes | 13,500 | |||
Personal property taxes (on inventory and equipment) | 21,600 | |||
Personnel department expenses | 22,500 |
Assume that the property tax rate is the same for both inventory and equipment. Using the most causally related bases, prepare a schedule assigning the fixed expenses to the three departments. Hint: Not all fixed expenses are traceable to the three departments. One of these fixed costs should be considered a common cost and not traceable to the departments.
Do not round until your final answer. Round final answer to the nearest whole number.
Department A | Department B | Department C | ||
---|---|---|---|---|
Depreciation | Answer
| Answer
| Answer
| |
Real estate taxes | Answer
| Answer
| Answer
| |
Personal property taxes | Answer
| Answer
| Answer
| |
Personnel dept. expenses | Answer
| Answer
| Answer
|
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