In 2012, Elway Aerospace Company had gross revenues of $1.2M from operations. The following financial transactions were posted during the year: Manufacturing expenses (including depreciation of $45,000) $450,000 Operating expenses (excluding interest expenses) $120,000 A new short-term loan from a bank $50,000 Interest income on time deposit $6,000 Bond interest income $4,000 Interest expenses on borrowed funds (new and old) $40,000 Proceeds from sale of old equipment that had a book value of $75,000 $60,000 a. What is Elway's taxable gains/losses? b. What is Elway's income tax liability? c. What is the net cash flow? In 2012, Elway Aerospace Company had gross revenues of $1.2M from operations. The following financial transactions were posted during the year: Manufacturing expenses (including depreciation of $45,000) $450,000 Operating expenses (excluding interest expenses) $120,000 A new short-term loan from a bank $50,000 Interest income on time deposit $6,000 Bond interest income $4,000 Interest expenses on borrowed funds (new and old) $40,000 Proceeds from sale of old equipment that had a book value of $75,000 $60,000 a. What is Elway's taxable gains/losses? b. What is Elway's income tax liability? c. What is the net cash flow