Question

3.26 Cash flows: Refer to the information given in problem 3.21. What is the cash flow for Nimitz Rental?

Answer 1

CALCULATION OF NET INCOME AFTER TAX FOR NIMITZ RENTAL
FOR THE YEAR ENDED MARCH 31, 2017
	AMOUNT
Revenues	$           8,78,412
Less: Expenses
General and administrative expenses	$           3,52,666
Depreciation expenses	$           1,31,455
Leasing Expenses	$           1,08,195
Interest Expenses	$               78,122
Total Expenses	$           6,70,438
Net Income Before Tax	$           2,07,974
Tax @ 34%	$         70,711.16
Net Income After Tax	$           1,37,263
CALCULATION OF CASH FLOW FOR NIMITZ RENTAL
FOR THE YEAR ENDED MARCH 31, 2017
	AMOUNT
Net income after tax	$           1,37,263
Add: Depreciation Expenses (Non Cash Expenses)	$           1,31,455
Total Cash Flow	$           2,68,718