Please, calculate the five project cash flows for Solaris.

2014 Starting

2014 ending

2015,2016 ending

2017 recurring and termination

Solaris, is buying equipment to expand revenue in 2014.

Complete cost paid in cash 200K

Equipment life 4 years. In 2017 will sell for $20K

Inventory initial purchase $100K - account payable will finance 35% of inventory purchases during project's life.

Solaris balance sheet Cash Accounts Receivable Inventory Current Assets Equipment Less: Accumulated Depr. Net Equipment Other Total Long-Term Assets Total Assets Accounts Payable Total Liabilities Equity Total Liabilities & Equity 2010 2011 2012 2013 2014 $ $ $ $ 0 20,000 30,000 35,000 0 100,000 115,000 125,000 130,000 0 100,000 135,000 155,000 165,000 0 200,000 200,000 200,000 200,000 200,000 0 -66,000 -156,000 -186,000 -200,000 200,000 134,000 44,000 14,000 0 0 0 0 0 0 200,000 134,000 44,000 14,000 0 $300,000 $269,000 $199,000 $179,000 $ 70,000 80,500 87,500 91,000 70,000 80,500 87,500 91,000 0 230,000 188,500 111,500 88,000 $ 300,000 $269,000 $199,000 $179,000 $ Solaris Income Statement Sales Revenue Cost of Goods Sold Salaries Expense Depreciation Expense Other Expense Total Operating Expenses Gain (Loss) Sale Asset Net Income Before Taxes Income Tax Expense Net Income 2014 2015 2016 2017 $ 22,000 $ 255,000 $ 280,000 $315,000 70,000 80,000 105,000 125,000 30,000 37,500 45,000 60,000 16,000 90,000 30,000 14,000 5,000 5,000 5,000 5,000 171,000 212,500 185,000 204,000 0 0 0 20,000 49,000 42,500 95,000 131,000 14,700 12,750 28,500 39,300 34300 29750 66500 91700 Solaris balance sheet Cash Accounts Receivable Inventory Current Assets Equipment Less: Accumulated Depr. Net Equipment Other Total Long-Term Assets Total Assets Accounts Payable Total Liabilities Equity Total Liabilities & Equity 2010 2011 2012 2013 2014 $ $ $ $ 0 20,000 30,000 35,000 0 100,000 115,000 125,000 130,000 0 100,000 135,000 155,000 165,000 0 200,000 200,000 200,000 200,000 200,000 0 -66,000 -156,000 -186,000 -200,000 200,000 134,000 44,000 14,000 0 0 0 0 0 0 200,000 134,000 44,000 14,000 0 $300,000 $269,000 $199,000 $179,000 $ 70,000 80,500 87,500 91,000 70,000 80,500 87,500 91,000 0 230,000 188,500 111,500 88,000 $ 300,000 $269,000 $199,000 $179,000 $ Solaris Income Statement Sales Revenue Cost of Goods Sold Salaries Expense Depreciation Expense Other Expense Total Operating Expenses Gain (Loss) Sale Asset Net Income Before Taxes Income Tax Expense Net Income 2014 2015 2016 2017 $ 22,000 $ 255,000 $ 280,000 $315,000 70,000 80,000 105,000 125,000 30,000 37,500 45,000 60,000 16,000 90,000 30,000 14,000 5,000 5,000 5,000 5,000 171,000 212,500 185,000 204,000 0 0 0 20,000 49,000 42,500 95,000 131,000 14,700 12,750 28,500 39,300 34300 29750 66500 91700