Nimitz Rental Company provided the following information to its auditors. For the year ended March 31, 2013, the company had revenues of $871,731, general and administrative expenses of $352,928, depreciation expenses of $131,455, leasing expenses of $108,195, and interest expenses equal to $78,122. If the company's tax rate is 34 percent. What is the cash flow for Nimitz Rental?

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Business

Pablo Mcclure

4 June, 08:27

Nimitz Rental Company provided the following information to its auditors. For the year ended March 31, 2013, the company had revenues of $871,731, general and administrative expenses of $352,928, depreciation expenses of $131,455, leasing expenses of $108,195, and interest expenses equal to $78,122. If the company's tax rate is 34 percent. What is the cash flow for Nimitz Rental?

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Aniyah · Answer 1

264,136 Cash flow for Nimitz Rental

Explanation:

First we calculate the net income:

871,731 Sales

-352,928 general and administrative expenses

-131,455 depreciation expenses

-108,195 leasing expenses

-78,122 interest expenses

201,031 Income before taxes

(68350) Income tax expense

132,681 Net income

Then we remove the non-monetary expense

132,681 Net income

+131,455 depreciation expense

264,136 Cash flow for Nimitz Rental