Question
Your firm purchases a machine for $80,000 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 $80,000 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 $0
Your Credit (AR) sales from commercial consumers are $20,000
You have cash sales from your commercial customers of $10,000
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 15% Finally, you collect on past accounts receivable for $3,700 and pay off past accounts payable for $5,500
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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