Triangle Systems Had Earnings After Tax (EAT)of $1,000,000 Last Year

question 14

Multiple Choice

Triangle Systems had earnings after tax (EAT) of $1,000,000 last year. Included in its expenses were $50,000 of interest, $100,000 of deferred taxes (taxes that show up on the current year's income statement as expenses but aren't paid in cash in the current year) , and $150,000 of depreciation. In addition, the company paid dividends of $200,000 to its stockholders last year. What was Triangle's net cash flow last year?

• A)$1,500,000
• B)$1,300,000
• C)$1,150,000
• D)$1,050,000

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Definitions:

Marketing

The process and techniques used by organizations to promote and sell their products or services, including market research and advertising.

Administrative Expense

Expenses related to the general operation of a business, including executive salaries, marketing, and other non-production costs.

Period Cost

Operating expenses not directly associated with the production of goods, typically including selling, administrative, and other overhead costs.

Accounting Personnel

Individuals or staff working in an organization's accounting department, responsible for managing financial records and transactions.