Patton Inc. has a gross profit of $1,200,000 and $320,000 in depreciation expenses. Selling and administrative expense is $180,000. Given that the tax rate is 35%, compute the cash flow for Patton Inc. a. $700,000 b. $507,000 c. $620,000 d. $652,000

Patton Inc. has a gross profit of $1,200,000 and $320,000 in depreciation expenses. Selling and administrative expense is $180,000. Given that the tax rate is 35%, compute the cash flow for Patton Inc. a. $700,000 b. $507,000 c. $620,000 d. $652,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 1RE: Brandt Corporation had sales revenue of 500,000 for the current year. For the year, its cost of...

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Question

I need help with this financial accounting question using standard accounting techniques.

Patton Inc. has a gross profit of $1,200,000 and $320,000 in
depreciation expenses. Selling and administrative expense is
$180,000. Given that the tax rate is 35%,
compute the cash flow for Patton Inc.
a. $700,000
b. $507,000
c. $620,000
d. $652,000

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