Question: Your existing business generates $ 8 7 , 0 0 0 in EBIT. The corporate tax rate applicable to your business is 3 5 %
Your existing business generates $ in EBIT.The corporate tax rate applicable to your business is The depreciation expense reported in the financial statements is $You dont need to spend any money for new equipment in your existing cafes; however, you do need $ of additional cash.You also need to purchase $ in additional suppliessuch as tableclothes and napkins, and more formal tablewareon credit.It is also estimated that your accruals, including taxes and wages payable, will increase by $
Based on your evaluation, you havein free cash flow.
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