Beaver Company Had Taxable Cash Sales of $400,000 in Year

question 82

Multiple Choice

Beaver Company had taxable cash sales of $400,000 in Year 1. Tax-deductible cash expenses in Year 1 were $140,000, and capital cost allowance (CCA) deductions were $60,000. The income tax rate was 40%.
- What was the after-tax net cash inflow from all sources for Year 1?

• A) $104,000.
• B) $156,000.
• C) $180,000.
• D) $216,000.

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Definitions:

Minimum Acceptable Price

The lowest price at which a seller is willing to sell a product or service, often determined by costs, market conditions, and profitability goals.

Special Order

A one-time customer order often requiring a deviation from the standard product line or service offerings, potentially at a different pricing or cost structure.

Outside Supplier

An external entity that provides goods or services to a company, often used in the context of manufacturing or production.

Required Units

The amount of products that need to be produced to meet customer demand or sales forecasts.