Answer:
A. The net income task is $450,000
B. The net cash flow is $650,000
Explanation:
Part A
The net income can be calculated thus;
Earnings before Income Tax for Moore corporation = $750,000
Less Income tax (40%) = 0.4 x $750,000 = $300,000
Net Income = $750,000 - $300,000 = $450,000
Therefore the net income task is $450,000
Part B
The net cash flow can be calculated thus;
Earnings before Income Tax for Moore corporation $750,000
The Depreciation expense is = $200,000
Less Income tax as calculated in part A = $300,000
Net Cash Flow = ($750,000 + $200,000 ) - ($300,000) = $650,000
Therefore the net cash flow is $650,000
