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In a given year, a restaurant earned INR 38,500 in revenues. In that year, total expenses incurred were INR 30,000 and the depreciation amount was INR 3,200. At 40% tax rate, the net cash flow (in INR) for that year was _____
(Important - Enter only the numerical value in the answer)
Correct answer is '8300'. Can you explain this answer?
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In a given year, a restaurant earned INR 38,500 in revenues. In that y...
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In a given year, a restaurant earned INR 38,500 in revenues. In that y...
Given Information:
- Revenues of the restaurant in a given year = INR 38,500
- Total expenses incurred in that year = INR 30,000
- Depreciation amount = INR 3,200
- Tax rate = 40%
Calculating Net Income:
Net income is calculated by subtracting total expenses (including depreciation) from the revenues.
Revenues - Total Expenses = Net Income
38,500 - (30,000 + 3,200) = Net Income
38,500 - 33,200 = Net Income
Net Income = 5,300
Calculating Net Cash Flow:
Net cash flow is calculated by subtracting the tax amount from the net income.
Net Income - Tax = Net Cash Flow
5,300 - (40% of 5,300) = Net Cash Flow
5,300 - (0.4 * 5,300) = Net Cash Flow
5,300 - 2,120 = Net Cash Flow
Net Cash Flow = 3,180
Therefore, the net cash flow for that year is INR 3,180.
Correcting the Answer:
The correct answer is given as INR 8,300, which contradicts the calculations above.
However, based on the given information and calculations, the correct net cash flow should be INR 3,180.
If the correct answer is indeed INR 8,300, it suggests that there might be some additional information or calculation not provided in the question. Without that additional information, it is not possible to arrive at the correct answer of INR 8,300.
- Revenues of the restaurant in a given year = INR 38,500
- Total expenses incurred in that year = INR 30,000
- Depreciation amount = INR 3,200
- Tax rate = 40%
Calculating Net Income:
Net income is calculated by subtracting total expenses (including depreciation) from the revenues.
Revenues - Total Expenses = Net Income
38,500 - (30,000 + 3,200) = Net Income
38,500 - 33,200 = Net Income
Net Income = 5,300
Calculating Net Cash Flow:
Net cash flow is calculated by subtracting the tax amount from the net income.
Net Income - Tax = Net Cash Flow
5,300 - (40% of 5,300) = Net Cash Flow
5,300 - (0.4 * 5,300) = Net Cash Flow
5,300 - 2,120 = Net Cash Flow
Net Cash Flow = 3,180
Therefore, the net cash flow for that year is INR 3,180.
Correcting the Answer:
The correct answer is given as INR 8,300, which contradicts the calculations above.
However, based on the given information and calculations, the correct net cash flow should be INR 3,180.
If the correct answer is indeed INR 8,300, it suggests that there might be some additional information or calculation not provided in the question. Without that additional information, it is not possible to arrive at the correct answer of INR 8,300.
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In a given year, a restaurant earned INR 38,500 in revenues. In that year, total expenses incurredwere INR 30,000 and the depreciation amount was INR 3,200. At 40% tax rate, the net cash flow(in INR) for that year was _____(Important - Enter only the numerical value in the answer)Correct answer is '8300'. Can you explain this answer?
Question Description
In a given year, a restaurant earned INR 38,500 in revenues. In that year, total expenses incurredwere INR 30,000 and the depreciation amount was INR 3,200. At 40% tax rate, the net cash flow(in INR) for that year was _____(Important - Enter only the numerical value in the answer)Correct answer is '8300'. Can you explain this answer? for GATE 2024 is part of GATE preparation. The Question and answers have been prepared according to the GATE exam syllabus. Information about In a given year, a restaurant earned INR 38,500 in revenues. In that year, total expenses incurredwere INR 30,000 and the depreciation amount was INR 3,200. At 40% tax rate, the net cash flow(in INR) for that year was _____(Important - Enter only the numerical value in the answer)Correct answer is '8300'. Can you explain this answer? covers all topics & solutions for GATE 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In a given year, a restaurant earned INR 38,500 in revenues. In that year, total expenses incurredwere INR 30,000 and the depreciation amount was INR 3,200. At 40% tax rate, the net cash flow(in INR) for that year was _____(Important - Enter only the numerical value in the answer)Correct answer is '8300'. Can you explain this answer?.
In a given year, a restaurant earned INR 38,500 in revenues. In that year, total expenses incurredwere INR 30,000 and the depreciation amount was INR 3,200. At 40% tax rate, the net cash flow(in INR) for that year was _____(Important - Enter only the numerical value in the answer)Correct answer is '8300'. Can you explain this answer? for GATE 2024 is part of GATE preparation. The Question and answers have been prepared according to the GATE exam syllabus. Information about In a given year, a restaurant earned INR 38,500 in revenues. In that year, total expenses incurredwere INR 30,000 and the depreciation amount was INR 3,200. At 40% tax rate, the net cash flow(in INR) for that year was _____(Important - Enter only the numerical value in the answer)Correct answer is '8300'. Can you explain this answer? covers all topics & solutions for GATE 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In a given year, a restaurant earned INR 38,500 in revenues. In that year, total expenses incurredwere INR 30,000 and the depreciation amount was INR 3,200. At 40% tax rate, the net cash flow(in INR) for that year was _____(Important - Enter only the numerical value in the answer)Correct answer is '8300'. Can you explain this answer?.
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In a given year, a restaurant earned INR 38,500 in revenues. In that year, total expenses incurredwere INR 30,000 and the depreciation amount was INR 3,200. At 40% tax rate, the net cash flow(in INR) for that year was _____(Important - Enter only the numerical value in the answer)Correct answer is '8300'. Can you explain this answer?, a detailed solution for In a given year, a restaurant earned INR 38,500 in revenues. In that year, total expenses incurredwere INR 30,000 and the depreciation amount was INR 3,200. At 40% tax rate, the net cash flow(in INR) for that year was _____(Important - Enter only the numerical value in the answer)Correct answer is '8300'. Can you explain this answer? has been provided alongside types of In a given year, a restaurant earned INR 38,500 in revenues. In that year, total expenses incurredwere INR 30,000 and the depreciation amount was INR 3,200. At 40% tax rate, the net cash flow(in INR) for that year was _____(Important - Enter only the numerical value in the answer)Correct answer is '8300'. Can you explain this answer? theory, EduRev gives you an
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