Use the Table for the Question(s)below

question 119

Multiple Choice

Use the table for the question(s) below.
AOS Industries Statement of Cash Flows for 2015

-Consider the above statement of cash flows.In 2015,AOS Industries had contemplated buying a new warehouse for $2 million,the cost of which would be depreciated over 10 years.If AOS Industries has a tax rate of 25%,what would be the impact on the amount of cash held by AOS at the the end of the 2015?

• A)It would have $2,00,000 less cash at the end of 2015.
• B)It would have $1,950,000 less cash at the end of 2015.
• C)It would have $150,000 less cash at the end of 2015.
• D)It would have an additional $50,000 in cash at the end of 2015.
• E)It would have $1,800,000 less cash at the end of 2015.

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Definitions:

Variance

A measure of the dispersion or spread of a set of values, calculated as the average of the squared differences from the mean.

Analysis of Variance

A statistical method used to compare means and variances between two or more groups to determine if there are significant differences.

Factorial ANOVA

A statistical test used to examine the effects of two or more independent variables on a dependent variable, including interaction effects between them.

Interaction

In statistics, the way in which two or more variables are related to each other and the effect they have on the outcome of interest.