EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Chapter 4, Problem 1P
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To determine: Company B’s after-tax cash flow for last year.
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Last year, Blue Lake Mines, Inc., had earnings after tax of $550,000. Included in its expenses were depreciation of $240,000 and deferred taxes of $110,000. The company also purchased new capital equipment for $280,000 last year. Calculate Blue Lake's after-tax cash flow for last year. Round your answer to the nearest dollar.
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