What is the amount of the operating cash flow for a firm with $399,744 profit before tax, $100,000 depreciation expense, and a 35% marginal tax rate?

Respuesta :

The amount of the operating cash flow for a firm exists $359833.6.

The amount of additional tax paid for each new dollar of income received is known as the marginal tax rate.

What is meant by marginal tax rate?

The amount of additional tax paid for each new dollar of income received is known as the marginal tax rate. Total taxes paid divided by total income earned is the average tax rate. With a marginal tax rate of 10%, the tax would be deducted from the following dollar of income at a rate of 10%.

You can always compute your taxes both ways, taking into account and excluding the projected income from the proposed investment. The economic marginal tax rate from investing is calculated by dividing the difference in taxes by the investment's income.

In the US, as income rises, so does the federal marginal tax rate for people. The progressive taxation technique seeks to tax people in accordance with their wages, with low-income earners paying less in taxes than high-income earners.

OCF = [$399,744 × (1 - 0.35)] + $100,000 = $359833.6

The amount of the operating cash flow for a firm exists $359833.6.

To learn more about marginal tax rate refer to:

https://brainly.com/question/14435010

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