Question: Calculate the net after-tax cash flow effect of the following information using both the indirect and direct methods: sales, $220; expenses other than depreciation,

Calculate the net after-tax cash flow effect of the following information using both the indirect and direct methods: sales,

Calculate the net after-tax cash flow effect of the following information using both the indirect and direct methods: sales, $220; expenses other than depreciation, $110; depreciation expense, $60; marginal income tax rate, 33%. (Round your answers to 2 decimal places.) Indirect Method: Pre-tax Income After-tax Income After-tax cash flow Direct Method: After-tax cash operating income After-tax cash flow

Step by Step Solution

★★★★★

3.41 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Indirect Method Pretax Income Pretax Income Sales Expenses other than de... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

In Problem S11-23, TransAm Foods would like to know what the effect would be on the optimal solution and the companys decision regarding its shipping if it negotiates with its suppliers in...

In Problem 30, National Foods would like to know what the effect would be on the optimal solution and the companys decision regarding its shipping if it negotiates with its suppliers in Sacramento,...

The client, Mr. David Keys, would like to know what state law provides concerning the removal of a director from the board of directors of a corporation. Prepare an information letter to Mr. Keys...

The SCF for Wave Electronics Limited, using the indirect method of presentation for operating activities, is shown below. Required: 1. Some of the items included in operating activities, above, may...

Examine the statement of cash flows of Clock, Inc. Suppose Clocks operating activities provided, rather than used, cash. Identify three things under the indirect method that could cause operating...

Examine the statement of cash flows of Mirror, Inc. Suppose Mirrors operating activities provided, rather than used, cash. Identify three things under the indirect method that could cause operating...

Donnahoo Investments specializes in low-risk government bonds. Identify each of Donnahoos transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF), or a...

McDowell Investments specializes in low-risk government bonds. Identify each of McDowell's transactions as operating (O), investing (I), financing (F), noncash investing and financing (NIF), or a...

Jordan Corporation reports under IFRS. The following information applies to Jordan Corporation. 1. Prior to 2010, taxable income and accounting income were identical. 2. Accounting income was $1.7...

Zak Corp. purchased depreciable assets costing $600,000 on January 2, 2014. For tax purposes, the company uses CCA in a class that has a 40% rate. For financial reporting purposes, the company uses...

18. Determine the coordinates of the absolute extremes of y = 3sinx(cosx), 0 18. Determine the coordinates of the absolute extremes of y 3sinx(cosx), 0 x 27t. 19 Marks]

One scientist is measuring a physical quantity on a strange unit. For example, the time taken by the light to travel from a star to the earth was measured in units "BRT". If this unit has to make...

What is the variance and standard deviation of of 46.38, 46.18, 46.57, 46.72, 46.86, 46.58, 46.61, 46.64, 46.03, 45.93, 45.51, 45.53

Money Inc., a USA-based business has an acid test ratio of 3 times, and the value of the current assets including closing inventories (comprising of trade receivables of $2,000,000 and cash of...

we look at how companies use CRM, SCM, and ERP to gain a competitive advantage and run more efficiently. Find an industry/business or company currently using one of those technologies (CRM, SCM,...

1. What are the practices that Xerox used in its TQM implementation? Discuss. 2. What are some barriers that you think Xerox has faced during TQM implementation? Relate them. 3. Does TQM...

Discuss whether or not the below listed actions are tax avoidance or tax evasion. Then, discuss the ethical implications of employing each of these in a tax return. 1. Keeping a log of business...

Find the image of x = k = const under w = 1/z. Use formulas similar to those in Example 1. y| y = 0 -21 -2 -1 -1, /1 12 T -1 -1 y= -2 x =0

For Situations 1 through 6, provide the following information: a. An estimate of the non-value-added cost caused by each activity b. The root causes of the activity cost (such as plant layout,...

Davis, Inc., had the following quality costs for the years ended December 31, 2012 and 2013: At the end of 2012, management decided to increase its investment in control costs by 50 percent for each...

What are the main differences between a traditional and an activity-based make-or-buy analysis?

According to the Census Bureau, 3.13 people reside in the typical American household. A sample of 25 households in Arizona retirement communities showed the mean number of residents per household was...

Dole Pineapple Inc. is concerned that the 16-ounce can of sliced pineapple is being over-filled. Assume the standard deviation of the process is .03 ounce. The quality-control department took a...

Rutter Nursery Company packages its pine bark mulch in 50-pound bags. From a long history, the production department reports that the distribution of the bag weights follows the normal distribution...