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What is the incremental cash flow? Problem 7 Intro Creminy, Inc. estimates revenue of $77,000, costs of $38,500, and depreciation of $12,000 related to a
What is the incremental cash flow?
Problem 7 Intro Creminy, Inc. estimates revenue of $77,000, costs of $38,500, and depreciation of $12,000 related to a new project. The marginal tax rate is 34%. The project will require a capital expenditure of $53,000. It will also require an additional $18,000 in current (operating) assets and will create an extra $14,000 in current (operating) liabilities. Attempt 2/5 for 7.8 pts. Part 1 What is the supplemental operating cash flow? 29490 Correct SOCF = (Sales - Costs - Depreciation) (1 t) + Depreciation + = (77,000 - 38,500 - 12,000) (1-0.34) + 12,000 = 29,490 + IB-Attempt 1/5 for 10 pts. Part 2 What is the change in net working capital? 4000 Correct Change in NWC = ACA - ACL = 18,000 - 14,000 = 4,000 IB- Attempt 1/5 for 10 pts. Part 3 What is the incremental cash flow? 0+ decimals SubmitStep by Step Solution
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