Bagley Inc. had after-tax cash flows related to the purchase of inventory of $7,000 for September. What is the pre-tax cash flow relating to inventory purchases for the month, assuming a tax rate of 20%? Select one: a. $10,000 b. $4,900 c. $8,750 d. None of the above

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bagley Inc. had after-tax cash flows related to the purchase of inventory of $7,000 for September.
What is the pre-tax cash flow relating to inventory purchases for the month, assuming a tax rate of 20%?
Select one:
O a. $10,000
O
b. $4,900
c. $8,750
d. None of the above
Transcribed Image Text:Bagley Inc. had after-tax cash flows related to the purchase of inventory of $7,000 for September. What is the pre-tax cash flow relating to inventory purchases for the month, assuming a tax rate of 20%? Select one: O a. $10,000 O b. $4,900 c. $8,750 d. None of the above
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