Last year a firm had taxable cash receipts of $800,000 and the tax rate was 30%. The after-tax net cash inflow from these receipts was:

Name: Last year a firm had taxable cash receipts of $800,000 and the tax rate was 30%. The after-tax net cash inflow from these receipts was:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The after-tax net cash inflow is calculated by subtracting the tax from the taxable cash receipts. Tax = $800,000 * 30% = $240,000. Therefore, after-tax net cash inflow = $800,000 - $240,000 = $560,000.

Last Year a Firm Had Taxable Cash Receipts of $800,000