ABC, Inc. is considering purchase of a new equipment. The sales are expected to be $869751...
ABC, Inc. is considering purchase of a new equipment. The sales are expected to be $869751 and the total cash expenses are expected to be $386183. The annual depreciation is $56436 and the tax rate is 35.3%. What is the operating cash flow?
Homework Answers
Operating cash flow=(sales- total cash expenses)(1-tax rate)+tax savings on depreciation
=(869751-386183)(1-0.353)+(0.353*56436)
=$332,790.404
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ABC, Inc. is considering purchase of a new equipment. The sales
are expected to be $869751...
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