Question: through year 6, i will thmbs up Question Help Incremental operating cash flows Richard and Linda Thomson operate a local lawn maintenance service for commercial




Question Help Incremental operating cash flows Richard and Linda Thomson operate a local lawn maintenance service for commercial and residential property They have been using a John Deere riding mower for the past several years and believe that it is time to buy a new one. They would like to know the incremental relevant) cash flows associated with the replacement of the old nding mower. The following data are available 1. There are 5 years of remaining useful le on the old mower 2 The old mower has a zero book vake 3. The new mower is expected to last 5 years 4. The Thomsons will follow a 5-year MACRS T recovery period for the new mower 5 Depreciable value of the new wnmower is $1720 6. They are subject to a 40% tax rate 7. The new mower is expected to be more fuel efficient maneuverable, and will require less maintenance than the previous models which should result in reduced operating expenses op $496 per you 8. The Thomsons will buy a maintenance contract that calls for payments of $119 for the expected life of the mower Create an incremental operating cash now statement for the replacement of Richard and Linda's John Deere riding mower Show the incremental operating cash fow for the next 5 years Calculate the incremental operating cash flow statement below Round to the nearest dolar) Richard and Linda Thomson Incremental Operating Cash Flows Replacement of John Deere Riding Mower Year Savings from new and improved tower Less Annual maintenance cost Less Depreciation Saving loss) before Taxes (40%) Savingsloss) ter takes Enter any number in the edit holds and then continue to the next question Create an incremental operating cash flow statement for the replacement of Richard and Linda's John Richard and Linda Thomson Incremental Operating Cash Flows Replacement of John Deere Riding Mower Year Savings from new and improved mower Less: Annual maintenance cost Less: Depreciation Savings (loss) before taxes Taxes (40%) Savings (loss) after taxes A la Incremental operating cash flow (Round to the nearest dollar.) Enter any number in the edit fields and then continue to the next question, O Type here to search 5. They are subject to a 40% tax rate. 7. The new mower is expected to be more fuel-efficient, maneuverable, and will require less maintenance thar 3. The Thomsons will buy a maintenance contract that calls for annual payments of $119 for the expected life Create an incremental operating cash flow statement for the replacement of Richard and Linda's John Deerer Richard and Linda Thomson Incremental Operating Cash Flows Replacement of John Deere Riding Mower Year Savings from new and improved mower Less: Annual maintenance cost A Less: Depreciation Savings floss) before taxes Taxes (40%) Savings floss) after taxes Incremental operating cash flow (Round to the nearest dollar.) Enter any number in the edit fields and then continue to the next question hower require less maintenance than the previous models which should result in reduced operating expenses of $496 per year. - of $119 for the expected life of the mower. hard and Linda's John Deere riding mower. Show the incremental operating cash flow for the next 6 years. i Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Percentage by recovery year Recovery year 3 years 5 years 7 years 33% 20% 14% 45% 32% 25% 15% 19% 18% 7% 12% 12% 12% 5% 9% 9% 4% con AWN- 10 years 10% 18% 14% 12% 9% 9% 89 7% 6% 6% 6% 4% Totals 100% 100% 100% 100% 5. Depreciable value of the new lawn mower is $1,720. 6. They are subject to a 40% tax rate. 7. The new mower is expected to be more fuel-efficient, maneuverable, and will require less mainten 8. The Thomsons will buy a maintenance contract that calls for annual payments of $119 for the expe Create an incremental operating cash flow statement for the replacement of Richard and Linda's John Replacement of John Deere Riding Mower Year Savings from new and improved mower Less: Annual maintenance cost Less: Depreciation Savings (loss) before taxes Taxes (40%) Savings (loss) after taxes se ne Incremental operating cash flow (Round to the nearest dollar.) Richard and Linda Thomson Incremental Operating Cash Flows Replacement of John Deere Riding Mower L cum all Uldt Calls for annual payments of $119 for the expected life of them Create an incremental operating cash flow statement for the replacement of Richard and Linda's John Deere riding me Incremental operating cash flow (Round to the nearest dollar.) Richard and Linda Thomson Incremental Operating Cash Flows Replacement of John Deere Riding Mower Year Savings from new and improved mower Less Annual maintenance cost Less Depreciation Savings (loss) before taxes Taxes (40%) Savings (loss) after taxes Incremental operating cash flow Enter any number in the edit fields and then continue to the next question Type here to search op a ew *
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