Tetious Dimensions is introducing a new product that is expected to increase it net operating income by $475,000. The company has a 30% marginal tax rate. This project will also produce $200,000 of depreciation per year. In addition, this project will cause the following changes:
Without the Project With the Project
Accounts Receivable $105,000 $130,000
Inventory $200,000 $280,000
Accounts Payable $90,000 $130,000
What is the projects free cash flow for year 1?
Tetious Dimensions is introducing a new product that is expected to increase it net operating income by $475,000. The co...
(Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $790 comma 000790,000. Tetious Dimensions has a 3636 percent marginal tax rate. This project will also produce $180 comma 000180,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable $51 comma 00051,000 $93 comma 00093,000 Inventory 103 comma 000103,000 181 comma...
(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $765,000. Tetious Dimensions has a 36 percent marginal tax rate. This project will also produce $210,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable Inventory Accounts payable $56,000 103,000 69,000 $95,000 184,000 124,000 What is the...
(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $765,000. Tetious Dimensions has a 30 percent marginal tax rate. This project will also produce $220,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable Inventory Accounts payable $54,000 101,000 67,000 $85,000 184,000 115,000 What is the...
(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $760,000. Tetious Dimensions has a 31 percent marginal tax rate. This project will also produce $190,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable Inventory Accounts payable $54,000 101,000 69,000 $88,000 177,000 117,000 What is the...
(Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $765,000. Tetious Dimensions has a 32 percent marginal tax rate. This project will also produce $220,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project with the Project Accounts receivable Inventory Accounts payable $53,000 94,000 66,000 $95,000 184,000 118,000 What is the...
Duncan Motors is introducing a new product and has an expected change in net operating income of $310,000. Duncan Motors has a 32 percent marginal tax rate. This project will also produce $51,000of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project With the Project Accounts receivable $31,000 $28,000 Inventory 20,000 35,000 Accounts payable 47,000 84,000 What is the project's free cash flow in year 1?
ULUI.UOI PIU P12-8 (similar to) Question Help (Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is has an expected change in net operating income of $790,000. Tetious Dimensions has a 30 percent marginal tax rate. This project will also produce $210,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project with the Project Accounts receivable $58,000 er 1 Inventory 103,000 19 Accounts payable 69,000 19:...
P12-8 (similar to) Question Help (Related to Checkpoint 12.1) (Calculating changes in net operating working capital) Tetious Dimensions is introducing a new product and has an expected change in net operating income of $790,000 Tetious Dimensions has a 33 percent marginal tax rate. This project will also produce $210,000 of depreciation per year. In addition, this project will cause the following changes in year 1: Without the Project with the Project Accounts receivable Inventory Accounts payable $59,000 105.000 74,000 $93.000...
Racin' Scooters is introducing a new product and has an expected change in EBIT of $425,000. Racin' Scooters has a 33 percent marginal tax rate. The project will produce $90,000 of depreciation per year. In addition, the project will cause the following changes in year 1: What is theproject's free cash flow in year 1? WITHOUT THE PROJECT WITH THE PROJECT Accounts receivable 44,000 62,000 Inventory 65,000 89,000 Accounts payable 75,000 93,000
Racin' Scooters is introducing a new product and has an expected change in EBIT of $425,000. Racin' Scooters has a 33 percent marginal tax rate. The project will produce $90,000 of depreciation per year. In addition, the project will cause the following changes in year 1: What is theproject's free cash flow in year 1? WITHOUT THE PROJECT WITH THE PROJECT Accounts receivable 44,000 62,000 Inventory 65,000 89,000 Accounts payable 75,000 93,000