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Use the Table for the Question(s)below

Question 14

Multiple Choice

Use the table for the question(s) below. Use the table for the question(s) below.   -Consider the above statement of cash flows. In 2018, 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 2018? A) It would have $150 000 less cash at the end of 2018. B) It would have $2 000 000 less cash at the end of 2018. C) It would have $1 950 000 less cash at the end of 2018. D) It would have an additional $50 000 in cash at the end of 2018.
-Consider the above statement of cash flows. In 2018, 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 2018?


A) It would have $150 000 less cash at the end of 2018.
B) It would have $2 000 000 less cash at the end of 2018.
C) It would have $1 950 000 less cash at the end of 2018.
D) It would have an additional $50 000 in cash at the end of 2018.

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