El Dorado Storage has the following projections for Year 1 of a capital budgeting project. Sales...
El Dorado Storage has the following projections for Year 1 of a capital budgeting project.
Sales $236,872
Variable costs $127,101
Fixed costs adn selling, general and administrative expenses $10,611
Depreciation Expense $11,711
Tax Rate 35%
Calculate the operating cash flow for Year 1. Round the answer to two decimal
Homework Answers
operating cash flow for Year 1 = (sales-variable cost-fixed cost-depr expense)*(1-tax rate)+depr expense
=(236872-127101-10611-11711)*(1-0.35)+11711
=
| 68552.85 |
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El Dorado Storage has the following projections for Year 1 of a
capital budgeting project.
Sales...
El Dorado Storage has the following projections for Year 1 of a capital budgeting project. Sales...
El Dorado Storage has the following projections for Year 1 of a capital budgeting project. Sales $286,035 Variable costs $122,282 Fixed costs adn selling, general and administrative expenses $13,074 Depreciation Expense $22,699 Tax Rate 35% Calculate the operating cash flow for Year 1. Round the answer to two decimals.
El Dorado Storage has the following projections for Year 1 of a capital budgeting project. Sales...
El Dorado Storage has the following projections for Year 1 of a capital budgeting project. Sales $298,821 Variable costs $129,721 Fixed costs and selling, general and administrative expenses $10,732 Depreciation Expense $13,965 Tax Rate 35% Calculate the operating cash flow for Year 1. Round the answer to two decimals
13) Tully's Tool and Die has the following projections for Year 1 of a capital budgeting...
13) Tully's Tool and Die has the following projections for Year 1 of a capital budgeting project: Sales $400,000 Variable Cash Costs $240,000 Fixed Cash Costs $80,000 Depreciation Expense $50,000 Marginal Tax Rate 20% Calculate the operating cash flow for Year 1 O a) $30,000 O c) $74,000 O b) $24,000 O d) $114,000
Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon....
Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Lander estimated the following costs and revenues for the project: $260,000 $ 63,000 $ 19,500 Cost of equipment needed Working capital needed Repair the equipment in two years Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $380,000 $195,000 $ 86,999 The piece of equipment mentioned above has a useful life of five years and zero salvage value....
Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon....
Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Lander estimated the following costs and revenues for the project: $310,000 $ 68,000 $ 22.000 Cost of equipment needed Working capital needed Repair the equipment in two years Annual revenues and costs Sales revenues Variable expenses Fixed out-of-pocket operating costs $430,000 $220,000 $ 96,000 The piece of equipment mentioned above has a useful life of five years and zero salvage value....
Lander Company has an opportunity to pursue a capital budgeting project with a five-year time hor...
Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Lander estimated the following costs and revenues for the project: Cost of equipment needed $ 290,000 Working capital needed $ 66,000 Repair the equipment in two years $ 21,000 Annual revenues and costs: Sales revenues $ 410,000 Variable expenses $ 210,000 Fixed out-of-pocket operating costs $ 92,000 The piece of equipment mentioned above has a useful life of five years and...
Gaston Company is considering a capital budgeting project that would require a $2,600,000 investment in equipment...
Gaston Company is considering a capital budgeting project that would require a $2,600,000 investment in equipment with a useful life of five years and no salvage value. The company's tax rate is 30% and its after-tax cost of capital is 13%. It uses the straight-line depreciation method for financial reporting and tax purposes. The project would provide net operating income each year for five years as follows: $3,300,000 1,690,000 1,610,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and...
Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon....
Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Lander estimated the following costs and revenues for the project: Cost of equipment needed $ 280,000 Working capital needed $ 65,000 Repair the equipment in two years $ 20,500 Annual revenues and costs: Sales revenues $ 400,000 Variable expenses $ 205,000 Fixed out-of-pocket operating costs $ 90,000 The piece of equipment mentioned above has a useful life of five years and...
Gaston Company is considering a capital budgeting project that would require a $3,300,000 investment in equipment w...
Gaston Company is considering a capital budgeting project that would require a $3,300,000 investment in equipment with a useful life of five years and no salvage value. The company's tax rate is 30% and its after-tax cost of capital is 12%. It uses the straight-line depreciation method for financial reporting and tax purposes. The project would provide net operating income each year for five years as follows: $3,400,000 1,600,000 1,800,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising,, salaries, and...
Prudencio Corporation has provided the following information concerning a capital budgeting project: After-tax discount rate 13...
Prudencio Corporation has provided the following information concerning a capital budgeting project: After-tax discount rate 13 % Tax rate 30 % Expected life of the project 4 Investment required in equipment $ 160,000 Salvage value of equipment $ 0 Annual sales $ 400,000 Annual cash operating expenses $ 290,000 One-time renovation expense in year 3 $ 40,000 The company uses straight-line depreciation on all equipment. Assume cash flows occur at the end of the year except for the initial investments....
13) Tully's Tool and Die has the following projections for Year 1 of a capital budgeting project: Sales $400,000 Variable Cash Costs $240,000 Fixed Cash Costs $80,000 Depreciation Expense $50,000 Marginal Tax Rate 20% Calculate the operating cash flow for Year 1 O a) $30,000 O c) $74,000 O b) $24,000 O d) $114,000
Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Lander estimated the following costs and revenues for the project: $260,000 $ 63,000 $ 19,500 Cost of equipment needed Working capital needed Repair the equipment in two years Annual revenues and costs: Sales revenues Variable expenses Fixed out-of-pocket operating costs $380,000 $195,000 $ 86,999 The piece of equipment mentioned above has a useful life of five years and zero salvage value....
Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Lander estimated the following costs and revenues for the project: $310,000 $ 68,000 $ 22.000 Cost of equipment needed Working capital needed Repair the equipment in two years Annual revenues and costs Sales revenues Variable expenses Fixed out-of-pocket operating costs $430,000 $220,000 $ 96,000 The piece of equipment mentioned above has a useful life of five years and zero salvage value....
Gaston Company is considering a capital budgeting project that would require a $2,600,000 investment in equipment with a useful life of five years and no salvage value. The company's tax rate is 30% and its after-tax cost of capital is 13%. It uses the straight-line depreciation method for financial reporting and tax purposes. The project would provide net operating income each year for five years as follows: $3,300,000 1,690,000 1,610,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising, salaries, and...
Gaston Company is considering a capital budgeting project that would require a $3,300,000 investment in equipment with a useful life of five years and no salvage value. The company's tax rate is 30% and its after-tax cost of capital is 12%. It uses the straight-line depreciation method for financial reporting and tax purposes. The project would provide net operating income each year for five years as follows: $3,400,000 1,600,000 1,800,000 Sales Variable expenses Contribution margin Fixed expenses: Advertising,, salaries, and...
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