Beaver Company had taxable cash sales of $400,000 in Year 1. Tax-deductible cash expenses in Year 1 were $140,000, and capital cost allowance (CCA) deductions were $60,000. The income tax rate was 40%.
- What was the after-tax net cash inflow from all sources for Year 1?

Question

Quizplus · Accepted Answer

From Appendix 13B, the pre-tax net cash inflow from all sources for Year 1 is $300,000. After deducting the tax of $120,000, the after-tax net cash inflow from all sources for Year 1 is $180,000 (300,000 - 120,000 = 180,000). Therefore, the best choice is C.

Beaver Company Had Taxable Cash Sales of $400,000 in Year