OCF from Several Approaches A proposed new project has projected sales of $96,000, costs of $49,000, and
Question:
OCF from Several Approaches A proposed new project has projected sales of $96,000, costs of $49,000, and depreciation of $4,500. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches described in the chapter and verify that the answer is the same in each case.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
To calculate the OCF we first need to calculate net income The incom...View the full answer
Answered By
Felix Mucee
I am a detailed and thorough professional writer with 5 years of administrative experience- the last 2 years in academic writing and virtual office environment. I specialize in delivering quality services with respect to strict deadlines and high expectations. I am equipped with a dedicated home office complete with a computer, copier/scanner/fax and color printer.
I provide creative and detailed administrative, web search, academic writing, data entry, Personal assistant, Content writing, Translation, Academic writing, editing and proofreading services. I excel at working under tight deadlines with strict expectations. I possess the self-discipline and time management skills necessary to have served as an academic writer for the past five years. I can bring value to your business and help solve your administrative assistant issues.
4.70+
13+ Reviews
33+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
A proposed new investment has projected sales of $635,000. Variable costs are 44 percent of sales, and fixed costs are $193,000; depreciation is $54,000. Prepare a pro forma income statement assuming...
-
A proposed new investment has projected sales of $830,000 Variable costs are 60 percent of sales, and fixed costs are $181,000 depreciation is $77,000 Prepare a pro forma statement of comprehensive...
-
A proposed new project has projected sales of $125,000, costs of $59,000, and depreciation of $12,800. The tax rate is 35 percent. Calculate operating cash flow using the four different approaches...
-
If you can't find similar ratios to class-covered ones, use financial formulas to calculate them manually. Choose up to two of the following: Operating Margin EBITDA Margin Payout Ratio 3. Analysis...
-
An air-track cart with mass m1 = 0.32 kg and initial speed v0 = 0.85 m/s collides with and sticks to a second cart that is at rest initially. If the mass of the second cart is m2 = 0.44 kg, how much...
-
Hi-Grade Regulator Company (see Problem 5) expects the EBIT level after the expansion program to be $1 million, with a two-thirds probability that it will be between $600,000 and $1,400,000. a. Which...
-
Use Aspen Plus Analysis to develop and print out ternary diagrams for the system water-chloroform-acetone using NRTL as the LLE correlation. Compare results to experimental data in Table 13-A2 (mole...
-
After all foreign and U.S. taxes, a U.S. corporation expects to receive 3 pounds of dividends per share from a British subsidiary this year. The exchange rate at the end of the year is expected to be...
-
The seller is in Istanbul, Turkey; the buyer is in Chicago. The original quotation on terry cloth towels is $5.00 per dozen, FOB Istanbul. Costs include export clearance of $0.10 per dozen, inland...
-
We have a digital medium with a data rate of 10 Mbps. How many 64-kbps voice channels can be carried by this medium if we use DSSS with the Barker sequence?
-
Calculating OCF Consider the following income statement: Fill in the missing numbers and then calculate the OCF. What is the depreciation tax shield? Sales S876,400 Costs 547,300 128,000 Depreciation...
-
Calculating Depreciation A piece of newly purchased industrial equipment costs $925,000 and is classified as seven-year property under MACRS. Calculate the annual depreciation allowances and...
-
(a) Growth of entire functions. If f(z) is not a constant and is analytic for all (finite) z, and R and M are any positive real numbers (no matter how large), show that there exist values of z for...
-
Officer Jablonski was on routine patrol when she observed a 2002 Blue Jeep Liberty not using the turn signal when switching lanes and swerving between lanes not staying within the lines. After...
-
Please review the statement below and share your opinion: After reading theNational Security Strategy (2017), provide your thoughts. 1b. Should the US publish a separate cybersecurity strategy...
-
Suppose you are given a relation R(A, B, C, D, E) with the following functional dependencies: BDE, AC. a. Show that the decomposition into R1(A,B,C) and R2(D,E) is lossy. b. Find a single dependency...
-
What is the Electronic Communications Privacy Act (ECPA) of 1986? Please use outside resources to assist with your answer. The ECPA act of 1986 is a legislative act that prohibits the use of wire...
-
Develop 6 questions (2 per code) that you would ask a BCBA who recommended the system to you, a parent, for their child. 2.14 Selecting, Designing, and Implementing Behavior-Change Interventions...
-
A realtor uses a lock box to store the keys to a house that is for sale. The access code for the lock box consists of five digits. The first digit cannot be zero or nine and the last digit must be a...
-
What services are provided by the provincial and territorial governments?
-
Assume the Black-Scholes framework. Let S(t) denote the time-t price of a nondividend-paying stock. You are given: (i) The current stock price is 38. (ii) The stocks volatility is 35%. (iii) The...
-
How does the calculation of net income differ from the calculation of cash flow to investors from operating activity?
-
All else equal, if a firm increases its accounts payable, what effect will this have on cash flow to investors?
-
What does it mean when a firms cash flow to investors is negative?
-
A beauty product company is developing a new fragrance named Happy Forever. There is a probability of 0 . 4 9 that consumers will love Happy Forever, and in this case, annual sales will be 1 . 0 9...
-
4 Consider the following information: Probability of Rate of Return if State Occurs 10 State of Economy State of Economy Stock A Stock B Stock C points Boom 0.55 0.06 0.14 0.34 Bust 0.45 0.10 0.02...
-
1 1 points eBook You are going to value Lauryn's Doll Co. using the FCF model. After consulting various sources, you find that Lauryn's has a reported equity beta of 1.7, a debt-to-equity ratio of...
Study smarter with the SolutionInn App