(Appendix 8C)The Moab Corporation Had Sales of $300, 000 and Expenses

question 44

Multiple Choice

(Appendix 8C) The Moab Corporation had sales of $300, 000 and expenses of $175, 000 last year.All sales were cash sales and all expenses were cash expenses.Moab Corporation's tax rate is 30%.The after-tax net cash inflow at Moab last year was:

• A)$210, 000
• B)$37, 500
• C)$52, 500
• D)$87, 500

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Definitions:

Straight Line Amortization

A technique for distributing the expense of an intangible asset evenly over its lifespan in yearly increments.

Goodwill

The intangible asset that arises when a company acquires another company for more than the fair value of its net identifiable assets.

Consolidated Balance Sheet

A financial statement showing the financial position of a company and its subsidiaries as one single entity.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal business cycle of a company.