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 | $110,000 | $525,000 | $275,000 |
| Cash operating expenses paid | 64,000 | 385,000 | 165,000 |
| Depreciation on tax return | 14,000 | 32,000 | 25,000 |
| 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
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| Cash operating expenses | Answer
| Answer
| Answer
| |
| Depreciation expense | Answer
| Answer
| Answer
| |
| (b) | Net after-tax cash flow | Answer
| Answer
| Answer
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