Question

net after-tax income $336,000 depreciation expense 56,200 accrued income tax expense 82,000 increase in accounts receivable for month 8,000 decrease in accounts payable for month 7,000 estimated bad debts expense 4,100 dividends declared in may 35,000 dividends paid in may 47,000

Answer 1

$457,300

Step-by-step explanation:

To calculate the net cash flow from operating activities, we need to start with the net income and adjust for non-cash expenses and changes in working capital.

Starting with net after-tax income of $336,000, we can make the following adjustments:

Add back depreciation expense: $56,200

Add back accrued income tax expense: $82,000

Add increase in accounts receivable: $8,000

Subtract decrease in accounts payable: ($7,000)

Add estimated bad debts expense: $4,100

Net cash flow from operating activities = $469,300

To calculate the cash flow from financing activities, we need to look at the dividends declared and paid:

• Dividends declared: $35,000
• Dividends paid: ($47,000)

Net cash flow from financing activities = ($12,000)

So the overall change in cash for the month would be:

Net cash flow from operating activities + Net cash flow from financing activities = $469,300 - $12,000 = $457,300

Therefore, the change in cash for the month is an increase of $457,300.

Answer 2

To calculate the net income after tax, we need to consider the following information:

Net income before tax = Net after-tax income + Accrued income tax expense

Net income before tax = $336,000 + $82,000 = $418,000

To calculate the net income before tax, we need to adjust for certain factors:

Increase in accounts receivable for the month = Decrease in net income before tax

Decrease in accounts payable for the month = Increase in net income before tax

Depreciation expense = Decrease in net income before tax

Estimated bad debts expense = Decrease in net income before tax

Let's calculate the adjustments:

Decrease in net income before tax = $8,000 (Increase in accounts receivable) - $7,000 (Decrease in accounts payable) - $56,200 (Depreciation expense) - $4,100 (Estimated bad debts expense)

Decrease in net income before tax = $-59,300

To calculate the net income after tax, we deduct the adjustments from the net income before tax:

Net income after tax = Net income before tax - Decrease in net income before tax

Net income after tax = $418,000 - $59,300

Net income after tax = $358,700

Keep in mind that the given information does not provide details on the tax rate or any other factors that may affect the calculation.