is less Tax on Profit on Sale of Asset and less Operating Costs (revenue and expenses) or (other cash flows)?

Q: calculate the EBIT: calculate the net income: calculate the OCF: what is the depreciation tax shield

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…

Q: Under the principle of cashflow estimation, why it is important that cashflow should be measured on…

A: A cash flow statement determines the net cash inflows and outflows from an organization during a…

Q: Depreciation is incorporated in cash flows because it:  A. Is unavoidable cost B. Is a cash…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: Does the management of long term assets benefit the business in anyway? Are there tax benefits as…

A: Assets  is a resource which has economic value and gives benefit to the company directly and…

Q: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…

A: Property plant and machinery are the fixed assets of the company which helps in production process.…

Q: What is calculation of before Tax (Equity) Cash Flow?  Please provide example.

A: The cash flow, which is generated by an investment after deducting all payments of all expenses from…

Q: Explain how did it get the value of depreciation, income taxation, NOPAT, and after-tax cash flow in…

A: Capital budgeting is the process through which various investments and capital projects are…

Q: From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable…

A: A company's physical or tangible long-term assets having a life of at least one year are referred to…

Q: Which of the following should NOT be taken into account in calculating free cash flow? Select one:…

A: Free Cash Flow = Net income + Depreciation – Change in Working Capital – Capital Expenditure

Q: Explain Net Income versus Cash Flow?

A: Definition: Statement of cash flows: This statement reports all the cash transactions which are…

Q: hat is "free cash flow" and how is it different from net income? Which of the two componenets is…

A: Free cash flow is very important in valuation of the company and cash is very important for the…

Q: a. For reporting purposes, management prefers higher profit; for tax purposes, lower taxable income…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS  Identify the best depreciation method: • For the…

Q: Depreciation is needed only for computing income taxes. True or false?

A:

Q: Can the net cash flows be viewed as before-tax values or aftertax values for which tax effects have…

A: Cash flow after taxes (CFAT) investigates the capacity of an organization to deliver income from its…

Q: Using your own words, briefly (hopefully) explain: (a). What is "retained earning"? How does…

A: Profit earning is the main and basic motive of every firm or business. Businesses use these profits…

Q: If you paid miscellaneous expenses does it decrease cash asset?

A: Miscellaneous expenses are those expenses which are usually group of small amounts from small…

Q: Under PAS 1, which of the followingitem is not included in the computation of profit?     Finance…

A: PAS 1 :           It is an accounting standard under Philippines Accounting Standards, the standard…

Q: Is Cash Flow more valuable than Accrual Income?

A: Under the accrual system of accounting, the transactions are recorded as and when they accrue…

Q: Do you believe that the cash flows from the sale of an investment should also include the tax effect…

A: Cash Flows in any entity's books reflect the inflow and outflow of cash during a specified period

Q: What are the disadvantages of only accounting for cash income and expenses in basic cost and return…

A: Cost and return analysis is also regarded as cost-benefit analysis which is carried out to make…

Q: Is cash flow more reliable than accounting profit? Which one is more useful?

A: Cash Flow Cash flow system records the cash inflow and cash outflow to determine company's…

Q: EBIT is equivalent to profits after taxes. true or false?

A: EBIT is the earnings before interest and tax.

Q: Why does an increase in the ratio of current assets to total assets decrease both profits and risk…

A: Current assets and current liabilities are utilized to decide the liquidity of an organization. At…

Q: n current purchasing power technique   (a) Why is it necessary to consider monetary assets…

A: Purchasing Power- Purchasing Power defines the value of currency in relation to goods, It depicts…

Q: Why isn’t accounting net income used in the net present value method of making capitalbudgeting…

A:

Q: What is the main reason the net income and cash flow from operations differ from each other?

A: Net income is the income earned by a business man after adjusting all the taxes and deductions. It…

Q: Is Cash Flow more important than  Accrual Based Income?

A: Cash flow: It can be defined as the aggregated balance of cash and cash equivalents that are…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.