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Nat2105 [25]
3 years ago
8

You are purchasing an equipment for $ 200,000 for your new store. Assume the store has no other expenses or revenues other than

those associated with this project. You are going to purchase an additional $ 12,500 of inventory for production with the new equipment and set up a cash account with a $ 2,000 balance. The inventory purchase will result in an account payable of $ 4,500. The firm's tax rate is 20%. What is the net cash flow at time zero?
Business
1 answer:
djverab [1.8K]3 years ago
4 0

Answer:

Negative cash balance of $210,000.

Explanation:

Given that,

cost of equipment = $200,000

Inventory purchased = $12,500

Cash balance = $2,000

Accounts payable = $4,500

Net cash flow at time zero:

= (cost of equipment) + (Increase in working capital)

= ($200,000) + (Inventory purchased + cash balance - Accounts payable)

= ($200,000) + ($12,500 + $2,000 - $4,500)

= ($200,000) + ($10,000)

= ($210,000)

Note: Negative values are in the parenthesis.  

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A card from a 52 card deck is lost. We then draw 2 cards from the 51 remaining cards. What is the probability they are both diam
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Answer:

\frac{1}{17}

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