Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An entrepreneur is considering buying a new My Pizza Pie franchise. He is currently looking at the yearly cash flows from owning the pizza company.
An entrepreneur is considering buying a new My Pizza Pie franchise. He is currently looking at the yearly cash flows from owning the pizza company. He has estimated the following from talking with company officials: Plant, Property, and Equipment $100,000.00 Yearly Sales $800,000.00 Cost of Goods Sold 40.00% of sales Other expenses 25.00% of sales The PPE for the store will be straight-line depreciated to zero over a 10-year period. If the tax rate is 35.00%, what is the yearly cash flow from the pizza company? Submit Answer format: Currency: Round to: 2 decimal places.
An entrepreneur is considering buying a new My Pizza Pie franchise. He is currently looking at the yearly cash flows from owning the pizza company. He has estimated the following from talking with company officials:
Plant, Property, and Equipment $100,000.00
Yearly Sales $800,000.00
Cost of Goods Sold 40.00% of sales
Other expenses 25.00% of sales
The PPE for the store will be straight-line depreciated to zero over a 10-year period. If the tax rate is 35.00%, what is the yearly cash flow from the pizza company?
Submit
Answer format: Currency: Round to: 2 decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Managerial Accounting
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips
2nd edition
978-0078025518
