Question

5. Operating cash flow by multiple approaches The estimated revenue from any investment was $175,000, the...

5. Operating cash flow by multiple approaches

The estimated revenue from any investment was $175,000, the cost was $93,000 and the depreciation cost was $24,800. The tax rate is 23%. Use four different approaches to get the operating cash flow and see if they have the same results.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Determine the Investment cash flow, Operating cash flow, and Net cash flow based on the following...
Determine the Investment cash flow, Operating cash flow, and Net cash flow based on the following assumptions. Initial investment of $120,000 to purchase and install a piece of equipment for an expansion project, 5 year straight line depreciation, $10,000 sale of equipment at the end of five years. The new equipment will increase pre tax revenue by $100,000 annually and increase operating expenses by $25,000 annually. The tax rate is 30%
Given the following project information, calculate the after-tax operating cash flow (ATOCF) using the four approaches...
Given the following project information, calculate the after-tax operating cash flow (ATOCF) using the four approaches of calculating operating cash flow.                                                                      Project cost = $950,000 Project life = five years Projected number of units sold per year = 10,000 Projected price per unit = $200 Projected variable cost per unit = 150 Fixed costs per year = $150,000 Required rate of return = 15% Marginal tax rate = 35% Depreciation = Straight-line to zero over five years (ignore...
Which one of the following is the definition of operating cash flow? Multiple Choice revenue minus...
Which one of the following is the definition of operating cash flow? Multiple Choice revenue minus expenses cash realized from the sale of assets cash flow originating from the issuance of securities cash generated by a firm's normal business activities pre-tax income
find the operating cash flow for the year for Harper brothers, Inc. if it has sales...
find the operating cash flow for the year for Harper brothers, Inc. if it has sales revenue of $316,000,000, cost of goods sold of $138,400,000, sales and administrative of $40,700,00, depreciation expense of $63,900,000, and a tax rate of 40%. the operating cash flow is
Based on the following information, what is the relevant operating cash flow (OCF) associated with the...
Based on the following information, what is the relevant operating cash flow (OCF) associated with the project expected to be in year 3? The project would require an initial investment in equipment of 900,000 dollars that would be depreciated using MACRS where the depreciation rates in years 1, 2, 3, and 4 are 40 percent, 23 percent, 23 percent, and 14 percent, respectively. At the end of the project in 3 years, the equipment would be sold for an expected...
Find the operating cash flow for the year for Harper? Brothers, Inc. if it had sales...
Find the operating cash flow for the year for Harper? Brothers, Inc. if it had sales revenue of $311,900,000?, cost of goods sold of $147,600,000?, sales and administrative costs of $40,400,000?, depreciation expense of $68,400,000?, and a tax rate of 40%.
What is the operating cash flow for year 5 of project A that Orange Valley Shipping...
What is the operating cash flow for year 5 of project A that Orange Valley Shipping should use in its NPV analysis of the project? The tax rate is 15 percent. During year 5, project A is expected to have relevant revenue of 70,000 dollars, relevant variable costs of 28,000 dollars, and relevant depreciation of 16,000 dollars. In addition, Orange Valley Shipping would have one source of fixed costs associated with the project A. Yesterday, Orange Valley Shipping signed a...
What is the operating cash flow for year 5 of project A that Green Forest Technology...
What is the operating cash flow for year 5 of project A that Green Forest Technology should use in its NPV analysis of the project? The tax rate is 10 percent. During year 5, project A is expected to have relevant revenue of 86,000 dollars, relevant variable costs of 22,000 dollars, and relevant depreciation of 15,000 dollars. In addition, Green Forest Technology would have one source of fixed costs associated with the project A. Yesterday, Green Forest Technology signed a...
After-Tax Cash Flows For each of the following independent situations, compute the net after-tax cash flow...
After-Tax Cash Flows For each of the following independent situations, compute the net after-tax cash flow amount by subtracting cash outlays for operating expenses and income taxes from cash revenue. The cash outlay for income taxes is determined by applying the income tax rate to the cash revenue received less the cash and noncash (depreciation) expenses. A B C Cash revenue received $92,000 $452,000 $222,000 Cash operating expenses paid 56,000 317,000 147,000 Depreciation on tax return 14,000 32,000 22,000 Income...
Problem 2-11 Free Cash Flow (LG2-5) You are considering an investment in Fields and Struthers, Inc....
Problem 2-11 Free Cash Flow (LG2-5) You are considering an investment in Fields and Struthers, Inc. and want to evaluate the firm’s free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $98 million, had a tax rate of 30 percent, and its depreciation expense was $9 million. Fields and Struthers’ gross fixed assets increased by $64 million from 2017 to 2018. The firm’s current assets increased by $52 million and spontaneous current...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT