You are starting your own business with an equity investment of $500,000. ?You have prepared ?prof-forma income
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You are starting your own business with an equity investment of $500,000. ?You have prepared ?prof-forma income statements for the first five years shown below.
You plan to distribute 100% of firms profits to yourself each year. Based upon the assumptions listed below will you be able to distribute all the firm?s profits?
Average Collection Period of 75 days based upon revenue.
Average Inventory days of 67 days based upon purchases
Average Payable Period of 27 days based upon purchases.
1. ?Determine the cash in and the cash out each year.
2. ?What is the net cash flow for each year
Related Book For
Organizations Behavior, Structure, Processes
ISBN: 978-0078112669
14th Edition
Authors: Gibson, Ivancevich, Donnelly, Konopaske
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