Question

Azure Corporation (a C corporation) sold $100,000 of merchandise for which it paid $40,000. It also...

Azure Corporation (a C corporation) sold $100,000 of merchandise for which it paid $40,000. It also paid $35,000 of other expenses. All transactions were in cash. What is Azure’s Corporation’s after-tax net cash inflow?

a. $21,250 b. $25,000 c. $60,000 d. $100,000

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Answer #1

Income before tax = income -expenses

            = 100000-40000-35000

            = 25000

tax on income = 25000*.15

                 = 3750

after tax net cash inflow = 25000-3750= 21250

correct option is "A"

               

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