A company has pre-tax cash inflows from operations of £500,000. If the company's tax rate is 35 per cent, the company's after-tax net cash inflow from operations would be

Question

Quizplus · Accepted Answer

To calculate the after-tax net cash inflow, subtract the tax amount from the pre-tax cash inflows. The tax amount is 35% of £500,000, which is £175,000. Subtracting this from £500,000 gives £325,000.

A Company Has Pre-Tax Cash Inflows from Operations of £500,000