Refer to E5.18. What is the expected cash outflow for bonus and taxes if the bonus and the taxes are paid in the budgeting period? What is the expected net income?

Data from E5.18

Downs, Inc., plans to pay its managers a bonus to encourage performance. The bonus rate is 10 percent and the bonus base is net income after bonus and after taxes (net income). Downs’s expected income before bonus or taxes is $300,000. Its tax rate is 30 percent. Determine the amount of the expected bonus.