Following is selected financial information for Epic Inc.
Revenues $225,000
Operating expenses (including depreciation) $100,000
Depreciation $ 15,000
Decrease in accounts receivable balance $ 5,000
Tax rate 21%
Calculate the after-tax net cash flows for the year.

Question

Quizplus · Accepted Answer

($225,000 + $5,000) - (100,000 - $15,000) =$115,000 x (1-.21) = $90,850
(Rev. + Dec. in AR) - (Op. Exp. - Depr.) = cash basis op. inc. x (1 - tax rate)

Following Is Selected Financial Information for Epic Inc