Bagus Co. reported Sales of $180,000, Cost of Goods Sold of $100,000 (including depreciation expense of $12,000), and Office Expenses of $8,000. The tax rate is 20%. The company has no significant changes in Accounts Receivable, Inventory, Accounts Payable, Prepaid Expenses, or Unearned Revenue.
What is the value of after-tax cash flows?

Question

Bagus Co. reported Sales of $180,000, Cost of Goods Sold of $100,000 (including depreciation expense of $12,000), and Office Expenses of $8,000. The tax rate is 20%. The company has no significant changes in Accounts Receivable, Inventory, Accounts Payable, Prepaid Expenses, or Unearned Revenue. 
What is the value of after-tax cash flows?

Quizplus · Accepted Answer

The Answer of Bagus Co. reported Sales of $180,000, Cost of Goods Sold of $100,000 (including depreciation expense of $12,000), and Office Expenses of $8,000. The tax rate is 20%. The company has no significant changes in Accounts Receivable, Inventory, Accounts Payable, Prepaid Expenses, or Unearned Revenue. 
What is the value of after-tax cash flows?

Bagus Co Reported Sales of $180,000, Cost of Goods Sold of of $100,000