Question
Your firm purchases a machine for $20,000 You purchase the machine using current available cash-balances from a previous period. You have cash sales from your
Your firm purchases a machine for $20,000 You purchase the machine using current available cash-balances from a previous period. You have cash sales from your retail customers of $150,000 You have Credit (AR) sales from your retail customers of $30,000 Your Credit (AR) sales from commercial consumers are $20,000 You have cash sales from your commercial customers of $0 The cost of your overhead is $45,000 which you pay for with cash. You have variable costs of $17,000 which you pay for with credit. Your firm's tax rate is 21% Finally, you collect on past accounts receivable for $4,000 and pay off past accounts payable for $5,000
Use the following depreciation schedule
Depreciation Schedule | Depreciation Percentage |
Year 1 | 0.33 |
Year 2 | 0.45 |
Year 3 | 0.15 |
Year 4 | 0.07 |
What is the firm's Free-Cash-Flow State your answer to the nearest dollar with no dollar sign or comma (e.g. 54067)
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