The 20X0 income statement of Nemo Company included the following: $\begin{array}{ll}
\text { Sales } & \$ 90,000 \
\text { Less: Expenses, excluding depreciation } & \$ 40,000 \
\text { Depreciation } & 30,000 \
\text { Income before taxes } & \$ 20,000 \
\text { Less: Income taxes }(30 \%) & \$ 6,000 \
\text { Net income } & \$ 14,000
\end{array}$
Required:
Calculate the total after- tax effect on cash.

Question

Quizplus · Accepted Answer

The Answer of The 20X0 income statement of Nemo Company included the following: $\begin{array}{ll}
\text { Sales } & \$ 90,000 \
\text { Less: Expenses, excluding depreciation } & \$ 40,000 \
\text { Depreciation } & 30,000 \
\text { Income before taxes } & \$ 20,000 \
\text { Less: Income taxes }(30 \%) & \$ 6,000 \
\text { Net income } & \$ 14,000
\end{array}$
Required:
Calculate the total after- tax effect on cash.

The 20X0 Income Statement of Nemo Company Included the Following