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Operating cash inflows Strong Tool Company has been considering purchasing a new late to replace a depreciated with that would otherwise more years. The new

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Operating cash inflows Strong Tool Company has been considering purchasing a new late to replace a depreciated with that would otherwise more years. The new this expected to have a 5 and depreciation charges of $2.260 in Year 1:53.615 in Year 2:52.547 in 51.356 inboard and Sand 3565 in Year. The firm w a s there and expenses ng depreciation and interest for the new and the old lathes to be shown in howing tabe There is subject to a 10% baxan ordinary income a. Cal te operating cash infow e d with each other. Note: Be sure to consider the depreciation in year) b. Ca thering cash ins ong from the proposed the replacement e. Depidon a timeline theoreta operating cash infows calculated in part Reven Expenses og depreciation and interest E rry number in the ads and then continue to the rest as been considering purchasing a new lathe to replace a fully depreciated lathe that would otherwise last 5 more years. The new lathe is expected ar 3; $1,356 in both Year 4 and Year 5, and $565 in Year 6. The firm estimates the revenues and expenses (excluding depreciation and interest) fo % tax rate on ordinary income. with each lathe. (Note: Be sure to consider the depreciation in year 6.) rom the pronased lathe replacement casi 0 Data Table with ast) (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) New Lathe Old Lathe Expenses Expenses (excluding depreciation (excluding depreciation Year Revenue and interest) Revenue and interest) $41,800 $30,800 $36,500 $24,900 42.800 30,800 36,500 24,900 43.800 30,800 36,500 24,900 44,800 30,800 36,500 24,900 45,800 30.800 36,500 24.900 Print Done continue to the next question. Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace of $2,260 in Year 1; $3,616 in Year 2; $2,147 in Year 3; $1,356 in both Year 4 and Year 5; and $565 in Ye the following table ! The firm is subject to a 40% tax rate on ordinary income. a. Calculate the operating cash inflows associated with each lathe. (Note: Be sure to consider the depreci b. Calculate the operating cash inflows resulting from the proposed lathe replacement. c. Depict on a time line the incremental operating cash inflows calculated in part b. Operating cash flows (Round to the nearest dollar.) Year Revenue Expenses (excluding depreciation and Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash flows $ $ $ $ (Round to the nearest dollar.) Year Enter any number in the edit fields and then continue to the next question. Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to repla of $2,260 in Year 1: $3,616 in Year 2; $2,147 in Year 3; $1,356 in both Year 4 and Year 5; and $565 in the following table The firm is subject to a 40% tax rate on ordinary income. a. Calculate the operating cash inflows associated with each lathe. (Note: Be sure to consider the depre b. Calculate the operating cash inflows resulting from the proposed lathe replacement. c. Depict on a time line the incremental operating cash inflows calculated in part b. Year Revenue Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash flows (Round to the nearest dollar.) Am Revenue Expenses (excluding depreciation and interest) Enter any number in the edit fields and then continue to the next question. Operating cash inflows Strong Tool Company has been considering purchasing a new lathe of $2,260 in Year 1; $3,616 in Year 2; $2,147 in Year 3; $1,356 in both Year 4 and Year 5; and the following table ! The firm is subject to a 40% tax rate on ordinary income. a. Calculate the operating cash inflows associated with each lathe. (Note: Be sure to consider ti b. Calculate the operating cash inflows resulting from the proposed lathe replacement. c. Depict on a time line the incremental operating cash inflows calculated in part b. Year Revenue Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash flows Year Revenue Expenses (excluding depreciation and interest) Profit before depreciation and taxes Enter any number in the edit fields and then continue to the next question. Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a of $2,260 in Year 1; $3,616 in Year 2: $2,147 in Year 3; $1,356 in both Year 4 and Year 5; and $565 in Year the following table The firm is subject to a 40% tax rate on ordinary income. a. Calculate the operating cash inflows associated with each lathe. (Note: Be sure to consider the depreciatia b. Calculate the operating cash inflows resulting from the proposed lathe replacement. c. Depict on a time line the incremental operating cash inflows calculated in part b. Net profit after taxes Operating cash flows Year Revenue Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash flows Calculate the operating cash inflows associated with the old lathe below: (Round to the nearest dollar Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated lathe that would othe of $2,260 in Year 1: $3,616 in Year 2: $2,147 in Year 3: $1,356 in both Year 4 and Year 5, and $565 in Year 6. The firm estimates the revenues ar the following table B The firm is subject to a 40% tax rate on ordinary income. a. Calculate the operating cash inflows associated with each lathe. (Note: Be sure to consider the depreciation in year 6.) b. Calculate the operating cash inflows resulting from the proposed lathe replacement. c. Depict on a time line the incremental operating cash inflows calculated in part b. Calculate the operating cash inflows associated with the old lathe below: (Round to the nearest dollar.) Year Revenue Expenses (excluding depreciation and interest) Profit before depreciation and taxes Depreciation Net profit before taxes Taxes Net profit after taxes Operating cash flows b. Calculate the incremental (relevant) operating cash inflows resulting from the proposed lathe replacement. Calculate the incremental (relevant) operating cash inflows resulting from the proposed lathe replacement below: (Round to the nearest dollar.) Year Enter any number in the edit fields and then continue to the next question. Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully deprecia of $2,260 in Year 1: $3,616 in Year 2: $2,147 in Year 3; $1,356 in both Year 4 and Year 5; and $565 in Year 6. The firm e the following table The firm is subject to a 40% tax rate on ordinary income. a. Calculate the operating cash inflows associated with each lathe. (Note: Be sure to consider the depreciation in year 6.) b. Calculate the operating cash inflows resulting from the proposed lathe replacement. c. Depict on a time line the incremental operating cash inflows calculated in part b. Year New Lathe Old Lathe Incremental Cash Flows $ (Round to the nearest dollar.) Year New Lathe Old Lathe Incremental Cash Flows (Round to the nearest dollar.) Year New Lathe Enter any number in the edit fields and then continue to the next question Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully deprecia of $2,260 in Year 1: $3,616 in Year 2; $2,147 in Year 3; $1,356 in both Year 4 and Year 5, and $565 in Year 6. The firm es the following table : The firm is subject to a 40% tax rate on ordinary income. a. Calculate the operating cash inflows associated with each lathe. (Note: Be sure to consider the depreciation in year 6.) b. Calculate the operating cash inflows resulting from the proposed lathe replacement. c. Depict on a timeline the incremental operating cash inflows calculated in part b. New Lathe Old Lathe Incremental Cash Flows (Round to the nearest dollar.) Year New Lathe Old Lathe Incremental Cash Flows (Round to the nearest dollar.) Year New Lathe Old Lathe Incremental Cash Flows Enter any number in the edit fields and then continue to the next question Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully of $2,260 in Year 1: $3,616 in Year 2: $2,147 in Year 3; $1,356 in both Year 4 and Year 5; and $565 in Year 6. TA the following table D The firm is subject to a 40% tax rate on ordinary income. a. Calculate the operating cash inflows associated with each lathe. (Note: Be sure to consider the depreciation in b. Calculate the operating cash inflows resulting from the proposed lathe replacement c. Depict on a time line the incremental operating cash inflows calculated in part b. UI Laune Incremental Cash Flows c. Depict on a time line the incremental operating cash inflows calculated in part b. (Select the best choice below. O A. Year $544 $1,686 $1,699 Cash flow OB. Year $2,582 $226 $544 Cash flow O c. Year $1,686 $ $1,982 $2,582 Year 0 4 5 $7,504 Cash flow OD. Year $8,646 $8,659 $8,942 $9,542 $226 5 Cash flow $1,686 $1,699 $1,982 $2,582 $226 Enter any number in the edit fields and then continue to the next

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