Multiple Choice
Use the table for the question(s) below.
AOS Industries Statement of Cash Flows for 2008
-Consider the above statement of cash flows.In 2008,AOS Industries had contemplated buying a new warehouse for $2 million,the cost of which would be depreciated over 10 years.If AOS Industries has a tax rate of 25%,what would be the impact for the amount of cash held by AOS at the end of the 2008?
A) It would have $2,000,000 less cash at the end of 2008.
B) It would have $1,950,000 less cash at the end of 2008.
C) it would have $150,000 less cash at the end of 2008.
D) it would have an additional $50,000 in cash at the end of 2008.
Correct Answer:

Verified
Correct Answer:
Verified
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