Bagley Inc. had after-tax cash flows related to the purchase of inventory of $7,000 for September. What is the pre-tax cash flow relating to inventory purchases for the month, assuming a tax rate of 20%? Select one: a. $10,000 b. $4,900 c. $8,750 d. None of the above

Bagley Inc. had after-tax cash flows related to the purchase of inventory of $7,000 for September. What is the pre-tax cash flow relating to inventory purchases for the month, assuming a tax rate of 20%? Select one: a. $10,000 b. $4,900 c. $8,750 d. None of the above

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 5MCQ

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Question

Bagley Inc. had after-tax cash flows related to the purchase of inventory of $7,000 for September.
What is the pre-tax cash flow relating to inventory purchases for the month, assuming a tax rate of 20%?
Select one:
O a. $10,000
O
b. $4,900
c. $8,750
d. None of the above

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