A company is adding a line to boost operating capacity. For the fifth year of the...

 

Transcribed Image Text:

A company is adding a line to boost operating capacity. For the fifth year of the project, forecasts are detailed below: Revenue will be $25,174 . Cash operating expenses will be $21,303 Depreciation expense caused by the new machine will be $1,528 Accounts receivable will increase by $1,083 Inventory will increase $1,291 Accounts payable will increase $939 Accrued expenses will increase $265 . The effective tax rate is 27% What will be the effect on free cash flow for the year in question? Assume the only investment in fixed assets will be the initial investment, so this will not affect annual free cash flows. No other factors change. Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234 If your result is less than zero, enter a negative number, like this: -90.1234 A company is adding a line to boost operating capacity. For the fifth year of the project, forecasts are detailed below: Revenue will be $25,174 . Cash operating expenses will be $21,303 Depreciation expense caused by the new machine will be $1,528 Accounts receivable will increase by $1,083 Inventory will increase $1,291 Accounts payable will increase $939 Accrued expenses will increase $265 . The effective tax rate is 27% What will be the effect on free cash flow for the year in question? Assume the only investment in fixed assets will be the initial investment, so this will not affect annual free cash flows. No other factors change. Enter your answer as a monetary amount rounded to four decimal places, but without the currency symbol. For example, if your answer is $90.1234, enter 90.1234 If your result is less than zero, enter a negative number, like this: -90.1234