not use ai please A company during year-1 has the following: gross income is $36M, $1M asset depreciation, total annual operating cost of $25M. Whatis the cash inflow during the year. Assume IRS corporate tax rates. 4M 5.5M 7.5M 8Mthe answere is 7.5M but I need to explain that

Step 1: Calculate Taxable IncomeTaxable Income = Gross Income - Operating Costs - DepreciationGross…

Answered: A company during year-1 has the…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 7P

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The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $11,000, respectively. What is the after-tax cashflow if the effective income tax rate is 23%? a.77990 b.66990 c. 75460 d. 64460 e. 20010
In year k, the before-tax cash flow of a corporation is $513,422. During year k, the expense is $112,274. The depreciation is $5,003. The effective income tax rate is 24%. What is the ATCF for this year?
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C Company had the following data for the last year (dollars in thousands): Net income = $700; EBIT = $1,200; Total assets = $3,500; and Total operating capital = $2,100. Information for the current year is as follows: Net income = $800; EBIT = $1,555; Total assets = $3,800; and Total operating capital = $2,500. The company's federal and state tax rate is 35%. How much free cash flow did the firm generate during the current year? Round your answer to the nearest dollar. (Hint: FCF = NOPAT - Net Investment in Operating Capital) Group of answer choices: $605 $617 $611 $608 $614
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A company during year-1 has the following: gross income is $36M, $1M asset depreciation, total annual operating cost of $25M. What is the cash inflow during the year. Assume IRS corporate tax rates. 4M 5.5M 7.5M 8M the answere is 7.5M but I need to explain that