Given the following financial statements for ACME Corporation,what is the company's after-tax cash flow from operations?

A) $10,000
B) $270,000
C) $120,000
D) $295,000

Question

Given the following financial statements for ACME Corporation,what is the company's after-tax cash flow from operations?

A) $10,000 
B) $270,000 
C) $120,000 
D) $295,000

Quizplus · Accepted Answer

To calculate the after-tax cash flow from operations, we need to first find the net income, which is $200,000. Then, we add back non-cash expenses like depreciation and amortization ($30,000) and changes in working capital (-$40,000). This gives us a cash flow from operations of $190,000. To calculate the after-tax cash flow, we need to subtract the taxes paid ($80,000) from the cash flow from operations, giving us an after-tax cash flow from operations of $110,000. Adding back the interest expense ($160,000) gives us a total after-tax cash flow of $270,000. Therefore, the best choice is B.

Given the Following Financial Statements for ACME Corporation,what Is the Company's