Last year the sales at Summit Corporation were $419,000 and were all cash sales. The expenses at Summit were $259,500 and were all cash expenses. The tax rate was 30%. The after-tax net cash inflow at Summit last year was:

A) $159,500
B) $47,850
C) $111,650
D) $419,000

Question

Alparslan Akp?nar · Accepted Answer

Final Answer : C, Explanation :  To calculate the after-tax net cash inflow, we first need to find the taxable income:Sales - Expenses = Taxable Income$419,000 - $259,500 = $159,500Then, we can calculate the taxes owed:Taxable Income x Tax Rate = Taxes Owed$159,500 x 0.30 = $47,850Finally, we can calculate the after-tax net cash inflow:Sales - Expenses - Taxes Owed = After-Tax Net Cash Inflow$419,000 - $259,500 - $47,850 = $111,650

Last year the sales at Summit Corporation were $419,000 and were all cash sales. The expenses at Summit were $259,500 and were all cash expenses. The tax rate was 30%. The after-tax net cash inflow at Summit last year was:

A) $159,500
B) $47,850
C) $111,650
D) $419,000

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Last year the sales at Summit Corporation were $419,000 and were all cash sales. The expenses at Summit were $259,500 and were all cash expenses. The tax rate was 30%. The after-tax net cash inflow at Summit last year was:A) $159,500B) $47,850C) $111,650D) $419,000

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Learning Objectives

Learning Objectives

Related questions

Last year the sales at Summit Corporation were $419,000 and were all cash sales. The expenses at Summit were $259,500 and were all cash expenses. The tax rate was 30%. The after-tax net cash inflow at Summit last year was:

A) $159,500
B) $47,850
C) $111,650
D) $419,000