Question

After-Tax Cash Flows For each of the following independent situations, compute the net after-tax cash flow amount by subtracting cash outlays for operating expenses and income taxes from cash revenue. The cash outlay for income taxes is determined by applying the income tax rate to the cash revenue received less the cash and noncash (depreciation) expenses. B Cash revenue received $74,000 $430,000 $210,000 Cash operating expenses paid 48,000 240,000 130,000 Depreciation on tax return 11,000 28,000 18,000 A Income tax rate 25% 35% 30% Do not use negative signs with any of your answers below. B A Cash revenue Cash outlays: Operating expenses Income taxes Total cash outlays Net after-tax cash flow $

Answer 1

	A	B	C
Cash revenue received	74,000	430,000	210,000
Cash operating expenses paid	48,000	240,000	130,000
Depreciation expense	11,000	28,000	18,000
Profit before tax	15,000	162,000	62,000
Income tax expense	3,750	56,700	18,600
Profit after tax	11,250	105,300	43,400

	A	B	C
Cash revenue received	74,000	430,000	210,000
Cash outlays:
Cash operating expenses paid	48,000	240,000	130,000
Income tax expense	3,750	56,700	18,600
Total cash outlays	51,750	296,700	148,600
Net after tax cash flow	22,250	133,300	61,400

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