Answer:
cash flow after taxes: 311,080
Explanation:
first we calculate the net income:
net operating income 40,000
interest expense:
200,000 x 8% = <u>(16,000)</u>
earnings before taxes: 24,000
income tax: 33% <u> (7,920)</u>
net income 16,080
then, we adjust for the non-monetary expenses in the income statement, which in this case; is depreication
+ depreciation expense: 300,000
and subtract the capital expenditures (CAPEX)
less CAPEX (5,000)
CASH FLOW AFTER TAX: 311,080