Fixed Assets $45,000,000.00 Initial Operating Expenses $15,000,000.00 Effective

Question

Fixed Assets $45,000,000.00 Initial Operating Expenses $15,000,000.00 Effective Tax Rate 40% Year Cost Revenue Amount for Depreciation 0 $60,000,000.00 $                  -   $                -   1 $ 5,000,000.00 $20,000,000.00 $9,000,000.00 2 $ 5,000,000.00 $20,000,000.00 $9,000,000.00 3 $ 3,000,000.00 $15,000,000.00 $9,000,000.00 4 $ 4,000,000.00 $15,000,000.00 $9,000,000.00 5 $ 5,000,000.00 $10,000,000.00 $9,000,000.00 Complete the below table - the blank cells Values 0 1 2 3 4 5 Sales revenue 0 20,000,000 20,000,000 15,000,000 15,000,000 10,000,000 Less: Other expenses 5,000,000 5,000,000 3,000,000 4,000,000 5,000,000 Fixed Assets 45,000,000 0 0 0 0 0 Initial Operating Expenses 15,000,000 0 0 0 0 0 Less: Tax depreciation 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 Total expenses and depreciation. 14,000,000 14,000,000 12,000,000 13,000,000 14,000,000 Gross income before taxes 6,000,000 Less: Income taxes 2,400,000 Net income after taxes 3,600,000 Add back: Tax depreciation 9,000,000 Net cash flow -60,000,000 12,600,000 Cumulative cash flow -60,000,000 -47,400,000 -8,800,000 Fixed Assets $45,000,000.00 Initial Operating Expenses $15,000,000.00 Effective Tax Rate 40% Year Cost Revenue Amount for Depreciation 0 $60,000,000.00 $                  -   $                -   1 $ 5,000,000.00 $20,000,000.00 $9,000,000.00 2 $ 5,000,000.00 $20,000,000.00 $9,000,000.00 3 $ 3,000,000.00 $15,000,000.00 $9,000,000.00 4 $ 4,000,000.00 $15,000,000.00 $9,000,000.00 5 $ 5,000,000.00 $10,000,000.00 $9,000,000.00 Complete the below table - the blank cells Values 0 1 2 3 4 5 Sales revenue 0 20,000,000 20,000,000 15,000,000 15,000,000 10,000,000 Less: Other expenses 5,000,000 5,000,000 3,000,000 4,000,000 5,000,000 Fixed Assets 45,000,000 0 0 0 0 0 Initial Operating Expenses 15,000,000 0 0 0 0 0 Less: Tax depreciation 9,000,000 9,000,000 9,000,000 9,000,000 9,000,000 Total expenses and depreciation. 14,000,000 14,000,000 12,000,000 13,000,000 14,000,000 Gross income before taxes 6,000,000 Less: Income taxes 2,400,000 Net income after taxes 3,600,000 Add back: Tax depreciation 9,000,000 Net cash flow -60,000,000 12,600,000 Cumulative cash flow -60,000,000 -47,400,000 -8,800,000

Explanation / Answer

Values 0 1 2 3 4 5 Sales revenue 0 2,00,00,000 2,00,00,000 1,50,00,000 1,50,00,000 1,00,00,000 Less: Other expenses 50,00,000 50,00,000 30,00,000 40,00,000 50,00,000 Fixed Assets 4,50,00,000 0 0 0 0 0 Initial Operating Expenses 1,50,00,000 0 0 0 0 0 Less: Tax depreciation 90,00,000 90,00,000 90,00,000 90,00,000 90,00,000 Total expenses and depreciation. 1,40,00,000 1,40,00,000 1,20,00,000 1,30,00,000 1,40,00,000 Gross income before taxes 60,00,000 60,00,000 30,00,000 20,00,000 -40,00,000 Less: Income taxes @ 40% 24,00,000 2400000 1200000 800000 0 Net income after taxes 36,00,000 36,00,000 18,00,000 12,00,000 -40,00,000 Add back: Tax depreciation 90,00,000 90,00,000 90,00,000 90,00,000 90,00,000 Net cash flow -6,00,00,000 1,26,00,000 1,26,00,000 1,08,00,000 1,02,00,000 50,00,000 Cumulative cash flow -6,00,00,000 -4,74,00,000 -3,48,00,000 -2,40,00,000 -1,38,00,000 -88,00,000

Related Questions

Navigate

• Browse (All)
• Browse F
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.