What is cash flow net of tax, Basic Statistics

Assignment Help:

What is cash flow net of tax?

I view income net of tax as the money spent without the earnings tax savings when the quantity is insurance deductible on the corporation’s earnings tax return.

To illustrate this, let’s assume that a U.S. organization pays a combined state and federal earnings tax rate of 40% on its last rise of earnings. If this organization spends an additional $10,000 for a tax insurance deductible company cost, it’s subject to taxes earnings will decrease by $10,000. This means that the organization will save paying $4,000 in duty ($10,000 less of subject to taxes earnings being subject to taxes at 40%).

In this situation, the income net of tax is $6,000 consisting of the $10,000 bought the company cost without the $4,000 of duty that will not have to get paid.

Expertsmind.com offers unique accounting assignment help

 


Related Discussions:- What is cash flow net of tax

Standard deviation, define standard deviation. their purpose,uses,advantage...

define standard deviation. their purpose,uses,advantages nd disadvantages,examples ,formula for grouped and ungrouped.

Interpolation and extrapolation, What is meant by interpolation and extrapo...

What is meant by interpolation and extrapolation. State the assumptions used for interpolation and extrapolation

Explain public budget, Explain public budget A plan of financial process ...

Explain public budget A plan of financial process embodying an estimate of proposed expenditures and any other expenditure for a given era of time and the proposed means of finan

Accounting cases, Hi I just want to know if you many be able to solve thes...

Hi I just want to know if you many be able to solve these three cases for intermediate accounting class! Thank you

Variance analysis , Terry Co. manufactures a commercial solvent that is use...

Terry Co. manufactures a commercial solvent that is used for industrial maintenance. This solvent is sold by the drum and generally has a stable selling price. Due to a decrease in

Business tax, Maria runs a small business out of her home. She has expense...

Maria runs a small business out of her home. She has expenses of $2,000 per year and uses the cash basis method of accounting. Her only employee is her cousin who works for her pa

Probability and stochastic process, In a quaternaryphase shift keying (QPSK...

In a quaternaryphase shift keying (QPSK) communications system, one of four equally probable symbols s0,...,s3 is transmitted in T seconds. If symbol si is sent, a waveform x(t,si)

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd