Question
The table below lists a number of financial transactions in a year for a firm. Using MACRS and US Tax code, determine the cash flow,
The table below lists a number of financial transactions in a year for a firm. Using MACRS and US Tax code, determine the cash flow, income tax and after tax profit of the firm for the year.
Sales | $ 300,000 |
Operating expenses | $ 50,000 |
Manufacturing cost | $ 50,000 |
3rd annual payment on a loan of $100,000 of 6 years at 8% per year compounded annually | |
Purchase of a piece of land for $200,000 | |
Sale of a machine for $30,000 with a book value of $20,000
Depreciation expense of existing assets | $30,000 |
the answer is following, how can i approach this?
Cash flow | 142,773 |
Income tax | 58,095 |
After tax profit | 112,773 |
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