Last year,the sales at Jersey Company were $200,000 and were all cash sales.The tax-deductible expenses at Jersey were $125,000 and were all cash expenses.The tax rate was 30%.What was the after-tax net cash inflow at Jersey last year from these operations?

Question

Quizplus · Accepted Answer

The calculation for after-tax net cash inflow is: 
Net Sales - Tax-Deductible Expenses x (1 - Tax Rate) 
$200,000 - $125,000 x (1 - 0.30) = $200,000 - $87,500 = $112,500 
Therefore, the after-tax net cash inflow at Jersey last year from these operations was $52,500 ($112,500 x 0.30).

Last Year,the Sales at Jersey Company Were $200,000 and Were