Parts A,B,C

P11-13 (similar to) Question Help Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated lathe that would otherwise last 5 more years. The new lathe is expected to have a 5-year life and depreciation charges of $2,020 in Year 1; $3,232 in Year 2; $1,919 in Year 3, $1,212 in both Year 4 and Year 5, and $505 in Year 6. The firm estimates the revenues and expenses (excluding depreciation and interest) for the new and the old lathes to be as shown 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 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. a. Calculate the operating cash inflows associated with the new 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 Enter any number in the edit fields and then click Check Answer. 13 parts I Clear All remaining Check Answer Opel Ully LUSI MTUWSLUITU TUUI CUMPally is Deel CUISIUelly Vui Cialy a llev luulelu Telule aluny Ue ellaleulalle Lilal vuuiu Ullel VISTASL JULYeals. Telew lalle 15 Apelleu lu Tavea Joycale allu Unses (excluding depreciation and interest) for the new Data Table depreciation charges of $2,020 in Yea and the old lathes to be as shown in ti a. Calculate the operating cash inflow b. Calculate the operating cash inflow c. Depict on a time line the increment (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) a. Calculate the operating cash inflow Year Revenue Expenses (excluding depreciation Profit before depreciation and tax Depreciation Net profit before taxes Revenue $39,400 40,400 41,400 42,400 43,400 New Lathe Expenses (excluding depreciation and interest) $29,500 29,500 29,500 29,500 29,500 Revenue $34,300 34,300 34,300 34,300 34,300 Old Lathe Expenses (excluding depreciation and interest) $26,900 26,900 26,900 26,900 26,900 Taxes Net profit after taxes Print Done