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…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 12P

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The annual revenue, expenses, and depreciation for a company are $130,000; 32,000; and $12,000, respectively. What is the after-tax cashflow if the effective income tax rate is 23%? O a. $75,460 O b. $66,220 O c. $63,460 O d. $78,220 O e. $19,780
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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