Operating cash flow Richard and Linda Thomson perin a local lawn maintenance mrvice for commercial del property. They have been using a Derending mower for the past seven years and believe that is me to buy a new one. They would like to know the operating cash flow cuted with the replacement of the old riding mower. The following data web t. There are 3 years of remaining unit on the older 2. The old mower has a zero book value 3. The new mower is expected to fast 5 years The Thomsons will follow a year MACRS recovery period for the new mowe Decreciable of the new w mowi $1.00 6 They are subject to a 40% de 7. The new mower is expected to be more fuel efficient maneuverable, and durable than the previous moes and can rebut in reduced operating experies of $482 per year a The Thomsons wil buy a mine contract that calls for anual payments of $115 Create an operating cash flow statement for the regisment of Richard and Linda's John Deere riding mower Show the operating con flow for the rest you Calculate the incremental coorwing cash flow statement below (Round to the nearest This Quiz: 5 pts possible Data Table nding mower for the past several years and be hard and Linda show one. The aining ustuvo book value and to last 5 year a 5-year MACRI wwwmowe tako ed to be more maintenance Towalement for 33% operating cash to (Click on the con here in order to copy the contents of the datatable below to spreadsheet) Rounded Depreciation Percentages by Recovery Year Using MACRS for First Four Property Classes Recovery year Percentage by recovery year 3 years 3 years 7 years 10 years 20N 145 2 45% 32 10N 25 15% 189 19% 10 14% 7% 12 12 12% 9 6 0% 9 9% 7% 8 4% 6% 0% 10 6% 11 49 Total 100% 100% 100% 100% "These percentages have been founded to the nearest whole percent o simplity calculations while retaining realism. To calculate the actual depreciation for a purposes, be sure to apply the actual rounded percentages or directly apply double-declining balance (200%) depreciation in the half year convertion and Linda The Operating Ca of John Deere Rd 12 proved mowe nance cost en folds and Print Done Replacement of John Deere Riding Mower Year 1 Savings from new and improved mower Less: Annual maintenance cost A A A Less: Depreciation Savings (loss) before taxes $ Taxes (40%) $ Savings (loss) after taxes $ Incremental operating cash flow $ N Year $ Savings from new and improved mower Less: Annual maintenance cost $ $ $ Less: Depreciation Savings (loss) before taxes Taxes (40%) Savings (loss) after taxes $ $ $ Incremental operating cash flow (Round to the nearest dollar.) Enter any number in the edit fields and then continue to the next q 3 Year Savings from new and improved mower 60 Less: Annual maintenance cost $ Less: Depreciation $ Savings (loss) before taxes $ Taxes (40%) $ $ Savings (loss) after taxes Incremental operating cash flow $ (Round to the nearest dollar.) Year 4 Savings from new and improved mower $ $ Less: Annual maintenance cost Less: Depreciation $ Savings (loss) before taxes Taxes (40%) $ $ $ Savings (loss) after taxes Incremental operating cash flow $ (Round to the nearest dollar.) Year 5 Savings from new and improved mower $ Less: Annual maintenance cost $ Less: Depreciation $ MI $ Savings (loss) before taxes Taxes (40%) $ Savings (loss) after taxes $ Incremental operating cash flow $ (Round to the nearest dollar.) Year 6 Savings from new and improved mower $ Less: Annual maintenance cost $ $ $ Less: Depreciation Savings (loss) before taxes Taxes (40%) Savings (loss) after taxes $ $ Incremental operating cash flow $
