You are given the following information: sales, $260; expenses other than depreciation, $140; depreciation expense, $50;...

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You are given the following information: sales, $260; expenses other than depreciation, $140; depreciation expense, $50; marginal income tax rate, 35%. Calculate the net after-tax cash flow effect of the preceding information using both the indirect and direct methods. (Round your answers to 2 decimal places.) Indirect Method: Pre-tax income 3 After-tax Income + S After-tax cash flow Direct Method: After-tax cash operating income After-tax cash flow a Indirect Method: Pre-tax income After-tax Income or tax och flow Less: Depreciation tax shield Less: Income-tax expense Less: Non-cash charges (depreciation) Plus: Depreciation tax shield Plus: Income-tax expense Indirect Method: Pre-tax income After-tax Income Less: Income-tax expense Less: Non-cash charges (depreciation) Plus: Depreciation tax shield Plus: Income-tax expense Plus: Non-cash charges (depreciation) You are given the following information: sales, $260; expenses other than depreciation, $140; depreciation expense, $50; marginal income tax rate, 35%. Calculate the net after-tax cash flow effect of the preceding information using both the indirect and direct methods. (Round your answers to 2 decimal places.) Indirect Method: Pre-tax income 3 After-tax Income + S After-tax cash flow Direct Method: After-tax cash operating income After-tax cash flow a Indirect Method: Pre-tax income After-tax Income or tax och flow Less: Depreciation tax shield Less: Income-tax expense Less: Non-cash charges (depreciation) Plus: Depreciation tax shield Plus: Income-tax expense Indirect Method: Pre-tax income After-tax Income Less: Income-tax expense Less: Non-cash charges (depreciation) Plus: Depreciation tax shield Plus: Income-tax expense Plus: Non-cash charges (depreciation)

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Step 1 Calculation of Pre Tax Income Sales Less Expenses other than De... View the full answer