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could you please solve it quickly, I have only one hour. QUESTIONS 1. Compute: increasing in net fixed assets, decrease in accrued taxes, retained ratio,
could you please solve it quickly, I have only one hour.
QUESTIONS 1. Compute: "increasing in net fixed assets", "decrease in accrued taxes", "retained ratio", "cost of new asset", "net income before tax", "net cash flow for the period", "initial cash outflow", "incremental cash flow for the terminal year before project windup considerations" and, "total amount of uses" according to the information given below: (45p) NOTE: PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS. Annual cash dividend payments : $3400 Decreasing in net working capital : $1400 Depreciation amount (charge) : $13335 Depreciation rate (MACRS) : 44.45% Final salvage value of new asset (after tax) : $3800 Gross additions to fixed assets : $29550 Net book value of the old asset : $8000 Net change in income after taxes for the period : $7165 Net income after tax (annual earnings) : $17000 Selling price of the old asset : S6000 Tax prepayment : S640 Tax rate : 20% Terminal-year incremental net cash flow :S13000 Total amount of sources : $39.000 Total tax payment : $5200 Step by Step Solution
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