The manager at Home Manufacturing Center needs to compute the effect of cash operating flows on the net income tax after the investment of a new home repair and design machine. The operating cost inflows from investment in the machine equal $150,000 with a 40% tax rate that resulted in $60,000 income taxes, excluding the effect of depreciation.
Required
Compute the after-tax cash flow from operations. What is the company's net income tax and cash flow from operations if the manager claims an additional deprecation deduction of $50,000 at the 40% tax rate?

 The Hopewell Factory disposes a capital asset with an original cost of $195,000 and accumulated depreciation of $115,000 for $55,000. The managerial accountant has a tax rate of 40%.
Required
Compute the after-tax cash inflow from the disposal of the capital asset (include proceeds).

 

Answer rating: 100% (QA)

Lets address each question separately Question 1 Compute the aftertax cash flow from operations for ... View the full answer