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 $1.43 million and will be depreciated

A gym owner is considering opening a location on the other side of town. The new facility will cost $1.43 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $551,000 in annual sales. Variable costs are 53 percent of sales, the annual fixed costs are $88,900, 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

Startup CFO The Finance Handbook For Your Growing Business

Authors: Kyle Brennan

1st Edition

1790959403, 978-1790959402

More Books

Students also viewed these Finance questions