sorry i know its sort of long, i need help thank you!!
Operating cash inflows Strong Tool Company has been considering purchasing a new latho to replace a fully depreciated lathe that would otherwise last 5 more years. The new latho is expected to have a 5-year life and depreciation charges of $2,000 in Year 1; $3,200 in Year 2, 51,900 in Year 3, 51.200 in both Year 4 and Year 5; and $500 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 rato on ordinary income a. Calculate the operating cash inflows associated with each latho. (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. - X Data table a. (Click on the icon here in order to copy the contents of the data table below into a spreadshoot.) New Lathe Old Lathe Expenses Expenses (excluding depreciation and (excluding depreciation and Year Revenue interest) Revenue interest) 1 $40.000 $30,000 $35,000 $25,000 2 41,000 30,000 35,000 25,000 3 42,000 30,000 35,000 25,000 4 43,000 30,000 35,000 25,000 5 44,000 30,000 35,000 25,000 (Rol Print Done Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciate more years. The new lathe is expected to have a 5-year life and depreciation charges of $2,000 in Year 1; $3,200 in Year 2 Year 4 and Year 5; and $500 in Year 6. The firm estimates the revenues and expenses (excluding depreciation and interest 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.) $ $ 6 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.) $ $ $ Year 2. 2 Operating cash inflows Strong Tool Company has been considering purchasing a nev (Round to the nearest dollar.) 2. $ $ $ 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.) $ $ $ $ $ $ 3 $ $ $ $ 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 $ $ $ S $ $ $ (Round to the nearest dollar.) ch 5 $ $ $ $ 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 6 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 nea $ Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated lathe that 1-5 $ $ $ 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 neam Year New Lathe Old Lathe Incremental Cash Flows (Round to the nearest dollar.) 1 $ S Year 2 New Lathe Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated lathe that would otherwise more years. The new lathe is expected to have a 5-year life and depreciation charges of $2,000 in Year 1; $3200 in Year 2, $1,900 in Year 3, S1,200 in Year 4 and Year 5; and $500 in Year 6. The firm estimates the revenues and expenses (excluding depreciation and interest) for the new and the old tatt 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. Calculate the incremental (relevant) operating cash inflows resulting from the proposed fathe replacement below. (Round to the nearest dollar) Year 1 New Lathe $ Old Lathe S $ 2 S $ 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 Latho $ 3 $ $ Old Lathe $ Incremental Cash Flows $ (Round to the nearest dollar.) Year 4 New Lathe $ Old Lathe Incremental Cash Flows $ (Round to the nearest dollar.) Year 5 New Lathe Old Lathe $ $ Incremental Cash Flows (Round to the nearest dollar.) Vaar Operating cash inflows Strong Tool Company has been considering purchasing a new lathe to replace a fully depreciated at more years. The new lathe is expected to have a 5-year life and depreciation charges of $2,000 in Year 1: $3,200 in Year 2, $1,5 Year 4 and Year 5; and $500 in Year 6. The firm estimates the revenues and expenses (excluding depreciation and interest) for be as shown in 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 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 6 New Lathe Old Lathe 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 2 3 3 4 5 6 N 6 Cash flow $800 $1,880 $1,960 $2.280 $2,880 OB. Year 0 2 3 4 5 6 Cash flow $800 $1,880 $1,960 $2,280 $2,880 $200 OC. Year 0 2 3 4 5 6 Cash flow $800 $1,880 $1,960 $2,280 $2,880 $200 OD. Year 0 1 2 3 4 5 6 Cash flow $6,800 $7,880 $7,960 $8,280 $8,880 $200
