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.

	A	B	C
Cash revenue received	$92,000	$452,000	$222,000
Cash operating expenses paid	56,000	317,000	147,000
Depreciation on tax return	14,000	32,000	22,000
Income tax rate	40%	30%	20%

Do not use negative signs with any of your answers below.

	A	B	C
Cash revenue	Answer	Answer	Answer
Cash outlays:
Operating expenses	Answer	Answer	Answer
Income taxes	Answer	Answer	Answer
Total cash outlays	Answer	Answer	Answer
Net after-tax cash flow	Answer	Answer	Answer

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Answer 1

Computation of income tax expense
Particulars	A	B	C
Cash revenue	$92,000.00	$452,000.00	$222,000.00
Cash operating expenses	$56,000.00	$317,000.00	$147,000.00
Depreciaiton	$14,000.00	$32,000.00	$22,000.00
Income before taxes	$22,000.00	$103,000.00	$53,000.00
Income taxes	$8,800.00	$30,900.00	$10,600.00
Particulars	A	B	C
Cash revenue	$92,000.00	$452,000.00	$222,000.00
Cash outlay:
Operating expenses	$56,000.00	$317,000.00	$147,000.00
Income taxes	$8,800.00	$30,900.00	$10,600.00
Total cash outlay	$64,800.00	$347,900.00	$157,600.00
Net after tax cash flow	$27,200.00	$104,100.00	$64,400.00