A firm generates sales of $250,000, depreciation expense of $50,000, taxable income of $50,000, and has a 35 percent tax rate. By how much does net cash flow deviate from net income?

A) $67,500
B) $82,500
C) $50,000
D) $17,500

Ans: C) $50,000

Business

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The functions of organizing, staffing, planning, and controlling are most closely associated with

A. employees. B. customers. C. managers. D. stockholders. E. accountants.

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Why do economists suggest that revenue sharing, in and of itself, will do little to improve competitive balance?

A. Teams receiving revenue-sharing transfers do not receive enough money for it to make a difference. B. Teams receiving revenue-sharing transfers may have little incentive to use the money to increase payroll, simply choosing to retain the transfer as added profit. C. Teams receiving revenue-sharing transfers are already the highest payroll teams. D. Both B and C are correct.

Business