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 1.48 million and will be depreciated

a gym owner is considering opening a location on the other side of town. the new facility will cost 1.48 million and will be depreciated on a straight-line basis over a 20 year period. the new gym is expected to generate 561000 in annual sales. variable costs are 48 percent of sales, the annual fixed costs are 90900, and the tax rate is 35 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

The Analysis And Use Of Financial Statements

Authors: Gerald I. White, Ashwinpaul C. Sondhi, Haim D. Fried

3rd Edition

0471375942, 978-0471375944

More Books

Students also viewed these Finance questions

Question

=+e. depreciation of the plant;

Answered: 1 week ago

Question

What are the pros and cons regarding Angelica joining the union?

Answered: 1 week ago