Compute the net after-tax cash flow amount

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Problem: After-Tax Cash Flows

For each of the following independent situations, compute the net after-tax cash flow amount by subtracting cash outlays for operating expenses and income taxes from cash revenue. The cash outlay for income taxes is determined by applying the income tax rate to the cash revenue received less the cash and noncash (depreciation) expenses.

Cash revenue received

$95,000

$455,000

$225,000

Cash operating expenses paid

57,000

318,000

146,250

Depreciation on tax return

14,250

45,500

22,500

Income tax rate

40%

30%

20%

Reference no: EM131786155

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