Question: A project will generate sales of $72,758 each. The variable costs are $15,235 and the fixed costs are $17,098. The project will use an equipment

A project will generate sales of $72,758 each. The variable costs are $15,235 and the fixed costs are $17,098. The project will use an equipment worth $125,145 that will be depreciated on a straight-line basis to a zero book value over a 18-year life of the project. If the tax rate is 23%.

What is the operating cash flow?

Step by Step Solution

★★★★★

3.44 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the operating cash flow we need to consider the sales variable costs fixed ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

A project will generate sales of $45,575 each. The variable costs are $19,267 and the fixed costs are $10,232. The project will use an equipment worth $108,747 that will be depreciated on a...

1. ABC, Inc is planning the purchase of new equipment that costs $102336. The project is expected to last for 5 years. Each year, the new project is expected to sell 108 units for $463 per unit. The...

Parker & Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company bought some land six years ago for $5.2 million in anticipation of...

A project will generate sales of $109,182 each. The variable costs are $17,425 and the fixed costs are $5,230. The project will use an equipment worth $143,243 that will be depreciated on a...

A project will generate sales of $42,747 each. The variable costs are $11,538 and the fixed costs are $15,701. The project will use an equipment worth $112,244 that will be depreciated on a...

5 A project has an initial requirement of $194,703 for new equipment and $9,144 for net working capital. The installation costs to get the new equipment in working condition are 5,829. The fixed...

A company is considering purchasing a machine for $100,000. Shipping costs would be another $5,000. The project would require an initial investment in net working capital of $4,000 which would be...

1.) ABC Company has a proposed project that will generate sales of 464 units annually at a selling price of $176 each. The fixed costs are $5,753 and the variable costs per unit are $94. The project...

Need help with these problems Piease answer questions 1-7 with the foiiowing information: 1. 2. Keith Urban Bookstores is considering a major expansion of its business. The details of the proposed...

1. ABC,Inc is planning the purchase of new equipment that costs $102336. The project is expected to last for 5 years. Each year, the new project is expected to sell 108 units for $463 per unit. The...

Explain recommendations with an action plan for implementing, to solve the 3 issues given below for The Lebanon Mountain Trail Association: Aiming for Sustainability case study. The LMTA's finance is...

Serverless technologies is a good practice for Question 41 options: Security Excellence Operational Excellence Performance Excellence Cost Optimization Excellence

ttached File(s): Psych Discussion Rubric Moral Theory Read pages 300-309 of your text. There are two general types of moral theories: (1) Morality is relative and (2) Morality is universal. Which of...

Rambo Company has three products, A, B, and C. The following information is available: Product A Product B Product C Sales $60,000 $90,000 $24,000 Variable costs 36,000 48,000 15,000 Contribution...

After reading aloud a certain fable to his fifth graders, mr osmet asks some students 'so who can you tell me the moral of this story> When the students don't respond immediately he tells them, "the...

The following table gives amount of annual spending of a country s defense budget in billions of dollars for military construction Let x 12 correspond to the year 2012 Sketch the graph of the...

5. Instead of expanding into the new plant, what are some other alternatives Gideon could use to meet this increased demand. Mention at least one alternative and talk about a strength of this...

Show that, given a maximum flow in a network with m edges, a minimum cut of N can be computed in O(m) time.

What is government financial condition? What is the major source for information about financial condition?

The Division of Motor Vehicles (DMV) is part of the State Department of Transportation (DOT). The purpose of that department is to ensure the safety and free flow of people and goods throughout the...

What is covered in the three paragraphs of the typical audit opinion letter?

A population has a proportion equal to 0.30. Calculate the following probabilities with n 100: a. P(p 0.35) b. P(p 0.40) c. P(0.25 p 0.40) d. P(p 0.27).

If a random sample of 200 items is taken from a population in which the proportion of items having a desired attribute is p 0.30, what is the probability that the proportion of successes in the...

Given a population where the probability of a success is p 0.40, if a sample of 1,000 is taken, a. Calculate the probability the proportion of successes in the sample will be less than 0.42. b. What...