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Calculate the cash flow after tax using cfat

Task: Revenues increase by 400,000, cash operating expenses increase by 180,000, and depreciation increases by 45,000. The tax rate is 34%.

1. Calculate the cash flow after tax using the formula that CFAT is operating cash flows after tax plus the depreciation tax shield.

2. Calculate the cash flow after tax using the formula that CFAT is net income plus depreciation.

3. Should the answers to a and b be the same?

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Calculate the cash flow after tax using cfat

Reference No:- TGS01737934

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Method of determining the commission rate

Q : Cash affect the accounting equation

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Q : Calculate the cash flow after tax using cfat

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Solution Preview :

Prepared by a verified Expert

Accounting Basics: Calculate the cash flow after tax using cfat

Reference No:- TGS01737934

Recent Questions Asked Accounting Basics

Q : Method of determining the commission rate

Q : Cash affect the accounting equation

Q : Investing personal funds to start own law practice

Q : Attribute sampling and variable sampling

Q : Calculate the cash flow after tax using cfat

Q : Product mix and promotion strategy for sales campaign

Q : Monthly breakeven sales in dollars

Q : Depreciation on productive assets

Q : Determining cash balance

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