After-Tax Cash Flows For each of the following independent situations, compute t
ID: 2517910 • Letter: A
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 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.
Do not use negative signs with any of your answers below.
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A B C Cash revenue received $90,000 $450,000 $220,000 Cash operating expenses paid 54,000 315,000 145,000 Depreciation on tax return 12,000 30,000 20,000 Income tax rate 40% 30% 20%Explanation / Answer
A B C Cash revenue received 90,000 4,50,000 2,20,000 Cash operating expenses paid 54000 315000 145000 Depreciation on tax return 12000 30000 20000 Income tax rate 40.00% 30.00% 20.00% A B C Cash revenue 90,000 4,50,000 2,20,000 Cash outlays: Operating expenses 54000 315000 145000 Income taxes 9,600 31,500 11,000 Total cash outlays 63600 346500 156000 Net after-tax cash flow 26,400 1,03,500 64,000 Working Note: Income Tax Calculation: A B C Cash revenue received 90000 450000 220000 Less: Cash Operating Exp 54000 315000 145000 Less: Depreciation on Tax Return 12000 30000 20000 Net Taxable Income 24000 105000 55000 Income tax rate 40% 30% 20% Income Tax Expense(Taxable Income * Rate) 9600 31500 11000