Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A gym owner is considering opening a location on the other side of town. The new facility will cost $1.38 million and will be depreciated

A gym owner is considering opening a location on the other side of town. The new facility will cost $1.38 million and will be depreciated on a straight basis over 20-year period. The new gym is expected to generate $541,000 in annual sales. Variable costs are 52 percent of sales, the annual fixed costs are $86,900, and the tax rate is 21 percent. What is the operating cash flow?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

U.S. Mergers And Acquisitions Legal And Financial Aspects

Authors: Felix Lessambo

1st Edition

3030857344,3030857352

More Books

Students also viewed these Finance questions

Question

What is the total charge of all the electrons in 1.0kg of H2O?

Answered: 1 week ago

Question

Q.No.1 Explain Large scale map ? Q.No.2 Explain small scale map ?

Answered: 1 week ago

Question

1. Signs and symbols of the map Briefly by box ?

Answered: 1 week ago