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nordsb [41]
4 years ago
14

You have just completed a $ 24 comma 000 feasibility study for a new coffee shop in some retail space you own. You bought the sp

ace two years ago for $ 98 comma 000​, and if you sold it​ today, you would net $ 112 comma 000 after taxes. Outfitting the space for a coffee shop would require a capital expenditure of $ 33 comma 000 plus an initial investment of $ 5 comma 300 in inventory. What is the correct initial cash flow for your analysis of the coffee shop​ opportunity?
Business
1 answer:
ikadub [295]4 years ago
6 0

Answer:

$150,300

Explanation:

The computation of the correct initial cash flow is shown below:

= Capital expenditure + net after taxes + initial investment in inventory

= $33,000 + $112,000 + $5,300

= $150,300

The net after taxes is also term as opportunity cost

And, the initial investment in inventory is also term as change in working capital

All other information which is given is not relevant. Hence, ignored it

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Electronic scanners that track consumer purchases are examples of the ________ method of marketing research.
Marta_Voda [28]
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3 years ago
Northern Organic Farms is considering a project which will produce annual sales of $975,000 and increase cash expenses by $848,0
stealth61 [152]

Answer:

B) $114,000

Explanation:

To calculate the operating cash flows using the top down approach we can use the following equation:

operating cash flow = increase in total sales - increase in total expenses - increase in taxes paid

operating cash flow = $975,000 - $848,000 - ($154,000 - $141,000) = $975,000 - $848,000 - $13,000 = $114,000

I didn't include depreciation since it is normally included to calculate the increase in taxes but taxes were already given.

5 0
3 years ago
Is the process of presenting a message to an audience, small or large?
alex41 [277]
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5 0
3 years ago
Splish Brothers Inc. reported net income of $394000 for the year. During the year, accounts receivable increased by $29000, acco
Scilla [17]

Answer:

$414000

Explanation:

Calculation to determine what Net cash provided by operating activities for the year is

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Less Receivable increased ($29000)

Less Accounts payable decreased ($12000)

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Therefore Net cash provided by operating activities for the year is $414000

6 0
3 years ago
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