Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Could you please answer the questions in the attachment I have Provided. Thank you. The owner of e Olcycle repolr shop forecasts revenues of S180.OOO
Could you please answer the questions in the attachment I have Provided. Thank you.
The owner of e Olcycle repolr shop forecasts revenues of S180.OOO a year. Varleble costs wlll be S55.OOO, end rental costs for the shop ere 335.000 a year. Depreclatlon on the repolr tools wlll be S15,OOO. The tax rate Is 30%. a. Calculate operatlng cash flow for the year by uslng all three methods: (a) adjusted accountng profits: (b) cash Inflow/cash outflow analysts: and (c) the depreclatlon tax shleld approach. Method Adjusted accountlng profits Cash Inflow/cash outflow analysls Deprec'aon tax shield approach b. Are the above answers equal? O No Ooeratlng Cosh Flow
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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