Last year Curative Technologies Inc.reported earnings after-tax of $23 million.Included in the expenses were depreciation of $3.7 million and interest expenses of $2.9 million.The year-end balance sheets shows an increase in deferred taxes of $2.6 million to a total of $14.2 million.What is Curative Technologies' aftertax cash flow for last year? Assume a marginal tax rate of 40%.
A)$20.1 million
B)$32.2 million
C)$29.3 million
D)$26.4 million

Question

Last year Curative Technologies Inc.reported earnings after-tax of $23 million.Included in the expenses were depreciation of $3.7 million and interest expenses of $2.9 million.The year-end balance sheets shows an increase in deferred taxes of $2.6 million to a total of $14.2 million.What is Curative Technologies' after­tax cash flow for last year? Assume a marginal tax rate of 40%.
A)$20.1 million
B)$32.2 million
C)$29.3 million
D)$26.4 million

Quizplus · Accepted Answer

ATCF = $23 + $3.7 + $2.6 = $29.3 million

Last Year Curative Technologies Inc