Question: After-Tax Cash Flows Using the data that is shown below - (a) calculate the individual after-tax cash flow effect of each relevant item in each
After-Tax Cash Flows
Using the data that is shown below - (a) calculate the individual after-tax cash flow effect of each relevant item in each independent situation, and (b) sum the individual after-tax cash flows in each situation to determine the overall net after-tax cash flow.
| A | B | C | |
|---|---|---|---|
| Cash revenue received | 66,000 | 315,000 | 165,000 |
| Cash operating expenses paid | 38,400 | 231,000 | 99,000 |
| Depreciation on tax return | 8,400 | 19,200 | 15,000 |
| Income tax rate | 30% | 25% | 20% |
Do not use negative signs with any of your answers below.
| A | B | C | ||
|---|---|---|---|---|
| (a) | Cash revenue | Answer | Answer | Answer |
| Cash operating expenses | Answer | Answer | Answer | |
| Depreciation expense | Answer | Answer | Answer | |
| (b) | Net after-tax cash flow | Answer | Answer | Answer |
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