From the Following Income Statement Information, Calculate Johnson's After Tax

question 32

Multiple Choice

From the following income statement information, calculate Johnson's after tax cash flow from operations. Net sales = $2,500
Cost of goods sold = $1050
Operating expenses = $490
Depreciation = $300
Tax rate = 34%

• A) $660.00
• B) $990.00
• C) $1257.00
• D) $735.60
• E) $1059.00

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Definitions:

Finished Goods Account

An account representing the total cost of manufactured goods that are completed and ready for sale.

Fiscal Year

A 12-month cycle utilized for the purposes of financial statements and planning budgets, not necessarily coinciding with the calendar year.

Standard Variances

Differences between planned or standard costs and actual costs in budgeting and accounting, used to monitor and control operational performance.

Principle of Exceptions

The principle of exceptions is a management concept focusing on identifying and dealing with cases that deviate from the normal operation or standards, thus streamlining processes and oversight.