Calculate blue lakes after tax cash flow

Reference no: EM13298730

Last year Blue Lake Mines Inc., had earnings after tax of $650,000. Included in its expenses were depreciation of $400,000 and deferred Taxes of $100,000. The company also purchased new capital equipment for $300,000 last year. Calculate Blue Lakes after tax cash flow for the last year.

Note:

I received an answer here: but was also told that the way you figure the problem is to do it this way:

650,000+400,000+100,000-300,000=850,000

So am just needing clarification as to which way the problem is to be solved.

Reference no: EM13298730

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