Last Year Curative Technologies Inc

Multiple Choice

Last year Curative Technologies Inc. reported after-tax earnings of $23 million. Included in the expenses were depreciation of $3.7 million and interest expenses of $2.9 million. The year-end balance sheets shows an increase in deferred taxes of $2.6 million to a total of $14.2 million. What is Curative Technologies' after-tax cash flow for last year? Assume a marginal tax rate of 40%.

A) $20.1 million
B) $32.2 million
C) $29.3 million
D) $26.4 million