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Vlad1618 [11]
3 years ago
13

In 2016 Whitney's Cafe had a total revenue of $136,900. In 2017 Whitney's Cafe had a total revenue of $175,200. Complete the fol

lowing statements. The revenue for Whitney's Cafe in 2017 was how many times as large as the revenue in 2016? times as large Preview
Business
1 answer:
Alexeev081 [22]3 years ago
4 0

Answer:

1.28 times

Explanation:

How many times as large the revenue generated in 2017 is compared to that of 2016 can be derived from the division of the revenues for both years.

Given that the total revenue for 2017 is $175,200 and that for 2016 is $136,900

The number of times 2017 revenue is as large as that of 2016

= $175,200/$136,900

= 1.28 times

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net income year 2 = ($17,000 - $3,600 - $8,000) x 0.65 = $3,510

net income year 3 = ($17,500 - $3,700 - $8,000) x 0.65 = $3,770

net income year 4 = ($14,500 - $2,900 - $8,000) x 0.65 =$1,340

b) incremental net cash flow

cash flow year 1 = [($16,500 - $3,500 - $8,000) x 0.65] + $8,000 - $430 = $10,820

cash flow year 2 = [($17,000 - $3,600 - $8,000) x 0.65] + $8,000 - $480 = $11,030

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cash flow year 4 = [($14,500 - $2,900 - $8,000) x 0.65] + $8,000 + $1,670 = $12,010

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