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Before income taxes, McFadden Company had revenues of $200,000 and expenses of $75,000 for the year. The expenses include $25,000 of depreciation. The company pays taxes at a 30% rate. What is the company's after-tax cash flow for the year? $125,000 $97,500 $100,000 112,500 None of the answer choices is correct

Before income taxes, McFadden Company had revenues of $200,000 and expenses of $75,000 for the year. The expenses include $25,000 of depreciation. The company pays taxes at a 30% rate. What is the company's after-tax cash flow for the year? $125,000 $97,500 $100,000 112,500 None of the answer choices is correct

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Before income taxes, McFadden Company had revenues of $200,000 and expenses of $75,000 for the year. The expenses include $25,000 of depreciation. The company pays taxes at a 30% rate. What is the company's after-tax cash flow for the year? $125,000 $97,500 $100,000 112,500 None of the answer choices is correct
Transcribed Image Text:Before income taxes, McFadden Company had revenues of $200,000 and expenses of $75,000 for the year. The expenses include $25,000 of depreciation. The company pays taxes at a 30% rate. What is the company's after-tax cash flow for the year? $125,000 $97,500 $100,000 112,500 None of the answer choices is correct
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