The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $15,000, respectively. What is the after-tax cashflow if the effective income tax rate is 23%? O a. $75,460 O b. $63,910 O c. $19,090 O d. $78,910 O e. $60,460

The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $15,000, respectively. What is the after-tax cashflow if the effective income tax rate is 23%? O a. $75,460 O b. $63,910 O c. $19,090 O d. $78,910 O e. $60,460

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter4: Financial Planning And Forecasting

Section: Chapter Questions

Problem 1P

See similar textbooks

Related questions

Q: Earnings before interest and taxes Current assets Non-current assets Current liabilities Non-current…

A: Solution Concept EVA means economic value added It means the value that is added over and above the…

Q: MYRRH Company reported P9,000,000 income before provision for income tax. The following data are…

A: Interest income from depository accounts is exempt from tax. hence it is a permanent difference. He…

Q: The Johnson's Company had net income(after tax) = 500,000 USD, Johnson's Company's income statement…

A: Times Interest Earned is the ratio that depicts how many times the organization can cover its…

Q: A company had a gross income of $7.5 million for the year in 2019. Depreciation in the year is…

A: The question is based on the calculation of tax amount for a firm, tax amount is charged on the…

Q: The Johnson's Company had net income (after tax) = 500,000 USD, Johnson's Company's income statement…

A: Times interest earned ratio is a ratio calculated to determine how many times the earnings available…

Q: 2. Waitrose has sales of £820,000 and costs of £600,000. Interest expense is £36,000 and…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: If a company's Income tax rate Is 30% and its annual depreclation deduction Is $80,000, then the…

A: Since depreciation deduction is debited to profit or loss account/income statement, we will save…

Q: come tax. Please consider the following information: Rent income received in advance P150,000…

A: Solution: The permanent difference "Interest income on time deposit 200,000".

Q: SOP Corporation furnished you with the following information: Net income after taxes P18,000 Income…

A: The Formula is; Times Interest earned = EBIT / Interest expense Division of interest expense with…

Q: This year, FCF Inc. has earnings before interest and taxes of $10,420,000 depreciation expenses of…

A: Solution: Free cash flow means the amount of cash available with a firm after meeting its operating…

Q: A company reported in the income statement for the current year P900,000 income before provision for…

A: Income as per Books 900000 Add:/less :Permanent difference- Interest income on time deposit (not…

Q: 2. Sohar Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the…

A: Income tax is a liability of every individual toupee to the government based on their taxable…

Q: A firm had gross profits from sales in the amountof $180,000, operating expenses of $90,000,and…

A: Net Income is defined as the aggregate amount of money that the business earned in the time period,…

Q: In a period, sales are $140,000, purchases $75,000 and other expenses $25,000. What is the figure…

A: Net profit = Total sales - Total expenses

Q: The following information relates to Maine, Inc.: Total assets…

A: (Economic Value added)EVA=NOPAT - (Total assets - Current liabilities)*WACC

Q: MYRRH Company reported P9,000,000 income before provision for income tax. The following data are…

A: Interest income from depository accounts is exempt from tax. hence it is a permanent difference. He…

Q: Using the Corporated Federal Income Tax Rate (2006), calculate the federal income tax that should be…

A: The following federal income tax rate (2006) table will be used:

Q: Useful Life Fixed Assets Cost Accounting Fiscal Land 2,000,000,000 1,800,000,000 50 Building Factory…

A: Deferred tax: Deferred tax is the tax effect of the timing difference. The difference between…

Q: MYRRH Company reported P9,000,000 income before provision for income tax. The following data are…

A: Taxable income = Income before tax + Rent received in advance - Interest income from depository…

Q: Refer to the following financial information of Scholz Company: NOPAT 8.250.000.00 EBITDA…

A: Formula: Economic value added (EVA) = Net operating profit after tax - Total invested capital x WACC…

Q: MYRRH Company reported P9,000,000 income before provision for income tax. The following data are…

A: Taxable income = Income before tax + Rent received in advance - Interest income from depository…

Q: Rent income received in advance 150,000 Interest income on time deposit 200,000 Depreciation…

A: 1. Statement of computation of Taxable income: Particulars Amount(P) Income before provision…

Q: A company generates $500,000 of gross income during its tax year and incurs operating expenses of…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Crystal Oil has $9 million in accounts payable, $1.8 in saleries and taxes payable, and $10.4 in…

A: Payables deferral period is a measure of delay between when a firm receives a bill and pays towards…

Q: In 2018, the total costs of operations (excluding income tax) amounted to P1,680,000. Included in…

Q: In the quarter ended 31 March 20X2, C had sales taxable outputs, net of sales tax, of $90,000 and…

A: When the sales exceeds the purchase, the excess sales tax is payable. Sales tax due can be…

Q: Patterson recently reported EBITA of $14.5 million. It had $2.0 million of interest expense, and its…

A: Depreciation: It is the non-cash expenses that is charged against the tangible assets of the…

Q: Susco had the following items this year: Gross receipts $700,000 Operating expenses 500,000…

A: Long term capital losses of the business can only be set off against long term capital gains. But…

Q: Santos Company had a 40 percent tax rate. Given the following pre-tax 21) amounts, what would be the…

A: Income tax is charged on the net income of the business. The net income is the Excess of revenue…

Q: If the net income after tax of the company is P4,000,00O, starting balance of assets is P500,000 and…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: MYRRH Company reported P9,000,000 income before provision for income tax. The following data are…

A: Earnings before tax = P9,000,000 Rent received in advance = P2,000,000 Corporate income tax rate =…

Q: Refer to the following financial information of Scholz Company: NOPAT…

A: Formulas: Depreciation and amortization expense = EBITDA - Earnings before tax - Interest expense…

Q: Assume a corporation has earnings before depreciation and taxes of $82,000, depreciation of $45,000,…

A: For calculating after tax cashflow of a company we add back deprecation to after tax income.

Q: Refer to the following financial information of Scholz Company: NOPAT…

A: Formulas: Depreciation and amortization expense = EBITDA - Earnings before tax - Interest expense…

Q: bon. The company S20 million at a rate of 6% compounded yearly. Determine the before tax cost of…

A: WACC refers to the joint cost of company's capital from all the sources of the company. It includes…

Q: o

A: Earnings before interest and taxes = $100,000 Depreciation = $50,000 Tax bracket = 30%

Q: Company DotThrive reported the following financial results. Operating income is $94.98 million and…

A: Free cash flows refer to the cash generated by a company after taking into consideration the cash…

Q: The income statement for Northeast Co. is shown below. How much is net operating profit after taxes…

A: The net income of the company refers to the excess of revenues of the company over the costs that…

Q: Company C recorded the following the past year: revenues = $250,000; expenses = $40,000;…

Q: 2. Sohar Company had a 40 percent tax rate. Given the following pre-tax amounts, what would be the…

A: The Revenue and expenses of company are given Required What would be the income tax expense…

Q: How much is the accounting income subject to tax? A. 900,000 B. 750,000 C. 700,000 D. 225,000

A: Answer are as follows

Q: A company has the following data for a year: Revenue 250 MM…

A: Revenue: It is the Income generated by any organization from the regular course of business…

Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

Question

The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $15,000, respectively.
What is the after-tax cashflow if the effective income tax rate is 23%?
O a. $75,460
O b. $63,910
O c. $19,090
O d. $78,910
O e. $60,460

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Inputs

VIEW

Answer

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

The Berndt Corporation expects to have sales of 12 million. Costs other than depreciation are expected to be 75% of sales, and depreciation is expected to be 1.5 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Berndts federal-plus-state tax rate is 40%. Berndt has no debt. a. Set up an income statement. What is Berndts expected net income? Its expected net cash flow? b. Suppose Congress changed the tax laws so that Berndts depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow? c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndts depreciation, it was reduced by 50%. How would profit and net cash flow be affected? d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? Why?
Talbot Enterprises recently reported an EBITDA of $8 million and net income of $2.4 million. It had $2.0 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?
Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of goods sold was 240,000, its operating expenses were 50,000, its interest revenue was 2,000, and its interest expense was 12,000. Brandts income tax rate is 30%. Prepare Brandts multiple-step income statement for the current year.
Rhodes Corporations financial statements are shown after part f. Suppose the federal-plus-state tax corporate tax is 25%. Answer the following questions. a. What is the net operating profit after taxes (NOPAT) for 2020? b. What are the amounts of net operating working capital for both years? c. What are the amounts of total net operating capital for both years? d. What is the free cash flow for 2020? e. What is the ROIC for 2020? f. How much of the FCF did Rhodes use for each of the following purposes: after-tax interest, net debt repayments, dividends, net stock repurchases, and net purchases of short-term investments? (Hint: Remember that a net use can be negative.) Rhodes Corporation: Income Statements for Year Ending December 31 (Millions of Dollars) Rhodes Corporation: Balance Sheets as of December 31 (Millions of Dollars)
A company has wants to earn an income of $60,000 after-taxes. If the tax rate is 32%, what must be the companys pre-tax income in order to have $60,000 after-taxes? A. $88,235 B. $19,200 C. $79,200 D. $143,000
Carter Swimming Pools has $16 million in net operating profit after taxes (NOPAT) in the current year. Carter has $12 million in total net operating assets in the current year and had $10 million in the previous year. What is its free cash flow?
Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital expenditures of $112,900, cash dividends of $35,800, and average maturities of long-term debt over the next 5 years of $122,300. What is Chasses free cash flow and cash flow adequacy ratio? a. $94,300 and 0.77, respectively c. $130,100 and 1.06, respectively b. $94,300 and 0.82, respectively d. $165,900 and 1.36, respectively
Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Refer to the information for Juroe Company on the previous page. Also, assume that Juroes total assets at the beginning of last year equaled 17,350,000 and that the tax rate applicable to Juroe is 40%. Required: Note: Round answers to two decimal places. 1. Calculate the average total assets. 2. Calculate the return on assets.