Fill in the ‘boxed’ values in the after tax cash flow below. EOY B4TCF Interest
ID: 2530189 • Letter: F
Question
Fill in the ‘boxed’ values in the after tax cash flow below.
EOY
B4TCF
Interest
Principal
Deprec
Taxable Inc.
Taxes
ATCF
0
-125,000
-50,000
-75,000
1
10,000
5,000
10,774
-2,850
-2,924
2
22,500
-6,423
-2,441
6,667
3
30,000
2,738
13,036
9,262
3,520
4
40,000
1434
14,340
14,400
24,166
15,043
5
80,000
11,525
68,475
26,021
53,980
EOY
B4TCF
Interest
Principal
Deprec
Taxable Inc.
Taxes
ATCF
0
-125,000
-50,000
-75,000
1
10,000
5,000
10,774
-2,850
-2,924
2
22,500
-6,423
-2,441
6,667
3
30,000
2,738
13,036
9,262
3,520
4
40,000
1434
14,340
14,400
24,166
15,043
5
80,000
11,525
68,475
26,021
53,980
Explanation / Answer
Answer
working
Year 1 Taxable Income = -2850/38%
= -7500
Year 1 Depreciation = B4CTF – Interest – Taxable Income
= 10000 – 5000 – (-7500)
= 12500
Year 2 Interest = 10% * (-50000 + 10774)
= 3923
Year 2 Principal = 15774 – 3923
= 11851
Year 2 B4CTF = Taxable Income + Interest + Depreciation
= -6423 + 3923 + 22500
Year 3 Depreciation = B4CTF – Interest – Taxable Income
= 30000 – 2738 – 9262
= 18000
Year 3 ATCF = B4CTF – Interest – Principal – Taxes
= 30000 – 2738 – 13036 – 3520
= 10706
Year 4 Taxes = 38% * 24166
= 9183
B4TCF interest principal depreciation taxable income taxes ATCF 0 -125000 -50000 -75000 1 10000 5000 10774 12500 -7500 -2850 -2924 2 20000 3923 11851 22500 -6423 -2441 6667 3 30000 2738 13036 18000 9262 3520 10706 4 40000 1434 14340 14400 24166 9183 15043 5 80000 11525 68475 26021 53980Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.