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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
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 | $92,000 | $452,000 | $222,000 |
Cash operating expenses paid | 56,000 | 317,000 | 147,000 |
Depreciation on tax return | 14,000 | 32,000 | 22,000 |
Income tax rate | 40% | 30% | 20% |
Do not use negative signs with any of your answers below.
A | B | C | |
---|---|---|---|
Cash revenue | |||
Cash outlays: | |||
Operating expenses | |||
Income taxes | |||
Total cash outlays | |||
Net after-tax cash flow |
Step by Step Solution
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Step: 1
To calculate the net aftertax cash flow for each situation follow these steps Situation A 1 Cash Revenue Given cash revenue is 92000 2 Cash Operating ...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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