Coral 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 Coral Corporation's after-tax net cash inflow?

Question

Quizplus · Accepted Answer

- Revenue = $100,000
- Cost of goods sold = $40,000
- Gross profit = $60,000
- Other expenses = $35,000
- Net profit before tax = $25,000
- Assuming a tax rate of 15%, the tax liability would be $3,750
- Net profit after tax = $21,250
- Since all transactions were in cash, the after-tax net cash inflow would also be $21,250.

Coral Corporation (A C Corporation)sold $100,000 of Merchandise for Which