For each of the following independent situations, compute the net after-tax cash

Question

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 Cash revenue received Cash operating expenses paid 45,000 260,000 120,000 Depreciation on tax return 0,000 25,000 15,000 Income tax rate $80,000 $400,000 $200,000 30% 40% 20% Do not use negative signs with any of your answers below Cash revenue Cash outlays: Operating expenses Income taxes Total cash outlays Net after-tax cash flow

Explanation / Answer

Calcualtion of Net after-tax cashflow -

As per Desired format -

Please note all values are in $.

In case of any clarification required please comment.

Particulars A B C Cash Revenue 80000 400000 200000 Cash Outlays less Cash Operating expenses paid 45000 260000 120000 less Depriciation as per tax 10000 25000 15000 EBIT 25000 115000 65000 Income tax rate 30% 40% 20% Income taxes paid 7500 46000 13000 Total Cash outlays ( operating exp + income tax) 52500 306000 133000 Net after tax cash flow (Cash revenue - total cash outlays) 27500 94000 67000

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