Newfangled Dangle Systems had earnings after tax of $1,000,000 last year.Included in its expenses were $50,000 of interest, $100,000 of deferred taxes, and $150,000 of depreciation.In addition, the company paid dividends of $200,000 to its stockholders last year.What was Newfangled's aftertax cash flow last year?
A)$1,500,000
B)$1,300,000
C)$1,150,000
D)$1,250,000

Question

Newfangled Dangle Systems had earnings after tax of $1,000,000 last year.Included in its expenses were $50,000 of interest, $100,000 of deferred taxes, and $150,000 of depreciation.In addition, the company paid dividends of $200,000 to its stockholders last year.What was Newfangled's after­tax cash flow last year?
A)$1,500,000
B)$1,300,000
C)$1,150,000
D)$1,250,000

Quizplus · Accepted Answer

ATCF = $1,000,000 + $150,000 + $100,000 = $1,250,000

Newfangled Dangle Systems Had Earnings After Tax of $1,000,000 Last