0+625=625-275=350+350=700+200=900
hope this helps
Answer:
Initial outlay = $60,000
Annual net income before tax = $7,200 per annum
Depreciation = <u>Cost - Residual value</u>
Estimated useful life
= <u>$60,000 - 0</u>
12 years
= $5,000 per annum
Annual net cashflow before tax
= Annual net income before tax + Depreciation
= $7,200 + $5,000
= $12,200
Explanation:
In this case, the annual net income before tax has been given. The annual net income before tax has excluded depreciation, which does not involve movement of cash. Therefore, we need to add back depreciation in order to obtain the expected before tax cashflow.
Answer:
The amount of its liabilities is 280000
Explanation:
In a business balance we can see the following accounting equation
liabilities + owners' equity= assets
liabilities = assets -owners' equity
liabilities = $700,000-$420,000
liabilities = $280,000
Answer:
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Explanation:
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