Question

Dapper Company received $7,000 cash from the sale of a machine that had an $11,000 book value. If the company is subject to a

0 0
Add a comment Improve this question Transcribed image text
Answer #1

net cash flow = after tax cash available

cash recieved from sale = 7000

tax rate = 30%

total tax = 7000 * 30% = 2100

net cash flow = 7000 - 2100 = $4900

hence option b is correct

Add a comment
Know the answer?
Add Answer to:
Dapper Company received $7,000 cash from the sale of a machine that had an $11,000 book...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 1 . Dapper Company received $9,000 cash from the sale of a machine that had an...

    1 . Dapper Company received $9,000 cash from the sale of a machine that had an $13,000 book value. If the company is subject to a 30% income tax rate, the net cash flow to use in a discounted-cash-flow analysis would be: Multiple Choice $10,200. $2,700. $6,300. $9,000. $7,800 2 . Omar Industries manufactures two products: Regular and Super. The results of operations for 20x1 follow. Regular Super Total Units 11,000 4,300 15,300 Sales revenue $ 297,000 $ 946,000 $...

  • Net income Cash dividends paid to stockholders Cash proceeds from sale of land Cash proceeds from...

    Net income Cash dividends paid to stockholders Cash proceeds from sale of land Cash proceeds from bank loan Cash payment (principal) on bank loan Cash paid to purchase equipment $9,500 2,400 3,200 6,200 1,500 4,800 The company would report net cash provided by (used in) investing activities of: Multiple Choice Ο $(1,600). Ο $(1,700). Ο 56.200. $6,200. Ο 59,500.

  • Golden Inc. cash flow ($ In millions) Cash received from: Customers Interest on investments Sale of...

    Golden Inc. cash flow ($ In millions) Cash received from: Customers Interest on investments Sale of land Sale of Rowdy's common stock Issuance of debt securities $2,550 250 150 700 2,500 Cash paid for: Interest on debt Income tax Debt principal reduction Purchase of equipment Purchase of inventory Dividends on common stock Operating expenses S 350 130 2,000 5,000 1,500 350 600 Golden would report net cash Inflows (outflows) from Investing activities in the amount of. Multiple Choice $14.850) million...

  • A firm's cash flows from investing activities include: A) Cash received from the sale of a...

    A firm's cash flows from investing activities include: A) Cash received from the sale of a plant asset B) Cash paid as dividends C) Cash received from the rendering of services to customers D) Cash paid to retire bonds payable 3. A firm's cash flow from financing activities includes: A) Cash paid to reacquire treasury stock B) Cash paid for merchandise purchased C) Cash received from sale of investment in bonds D) Cash received as interest income 4 Nacho Company...

  • MC algo 2-48 Cash Flow To Stockholders Mully's Muffins had net income of $2,535. The firm...

    MC algo 2-48 Cash Flow To Stockholders Mully's Muffins had net income of $2,535. The firm retains 70 percent of net income. During the year, the company sold $475 in common stock. What was the cash flow to shareholders? Multiple Choice Ο $1.300 Ο $286 Ο Ο 52250 Ο Ο 51,236 Ο 571

  • Bad Brad's BBQ had cash flows for the year as follows ($ in millions): CASH RECEIVED...

    Bad Brad's BBQ had cash flows for the year as follows ($ in millions): CASH RECEIVED FROM: $2,700 Customers Interest on investments 250 Sale of land 180 Sale of common stock 640 Issuance of debt securities 2,400 CASH PAID FOR: Interest on debt 270 80 Income tax Debt principal reduction Purchase of equipment Purchase of inventory Dividends on common stock Operating expenses 1,750 3,000 800 210 750 Bad Brad's would report net cash inflows (outflows) from financing activities in the...

  • . Flow Company has provided the following information for the year ended December 31, 2019: Cash...

    . Flow Company has provided the following information for the year ended December 31, 2019: Cash paid for interest, $24,000 Cash paid for dividends, $6,800 Cash dividends received, $4,800 Cash proceeds from bank loan $37,000 Cash purchase of treasury stock, $15,000 Cash paid for equipment purchase, $31.000 Cash received from issuance of common stock, $41,000 Cash received from sale of land with a $36,000 book value, $28,200 Acquisition of land costing $55,000 in exchange for preferred stock issuance. Payment of...

  • Mays Company sold a machine for $10,000 cash. The machine originally cost $65,000 and the company...

    Mays Company sold a machine for $10,000 cash. The machine originally cost $65,000 and the company had recognized $53,000 in depreciation over the life of the machine. What is the effect of this sale on Mays Company's income statement and its statement of cash flows? Multiple Choice $2,000 loss on the income statement; $10,000 cash outflow from operating activities $2,000 loss on the income statement; $10,000 cash inflow from investing activities $55,000 loss on the income statement; $10,000 cash inflow...

  • 1. A company had net cash flows from operations of $133,000, cash flows from financing of...

    1. A company had net cash flows from operations of $133,000, cash flows from financing of $356,000, total cash flows of $539,000, and average total assets of $3,280,000. The cash flow on total assets ratio equals: Multiple Choice 16.4%. 4.1%. 4.3%. 16.5%. 24.7% 2. In preparing a company's statement of cash flows using the indirect method, the following information is available: Net income $ 54,000 Accounts payable increased by 18,200 Accounts receivable decreased by 25,200 Inventories increased by 5,400 Depreciation...

  • Rowdy's Restaurants cash flow ($ in millions) Cash received from: Customers $ 3,600 Interest on investments...

    Rowdy's Restaurants cash flow ($ in millions) Cash received from: Customers $ 3,600 Interest on investments 320 Sale of land 220 Sale of Rowdy's capital stock 840 Issuance of debt securities 3,200 Cash paid for: Interest on debt $ 420 Income tax 200 Debt principal reduction 2,700 Purchase of equipment 6,400 Purchase of inventory 2,200 Dividends on capital stock 560 Operating expenses 740 Rowdy's would report net cash inflows (outflows) from investing activities in the amount of: Multiple Choice $220...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT