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Operating Activities Pizza Burger Annual Report Essay

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Operating Activities Pizza Pizza The measuring of future cash flows from the company was determined through a suitable pre-tax discount rate in order to calculate present value. The company also made assumptions about the future sales, vend-in of restaurants to Royalty Pool, tax rates, and terminal growth rates, by brand, which were based on historical experience and expected future performance ("Pizza Pizza Annual Report",2015). Also an $1.25 million increase in Non-cash swamp termination cost was caused by “the increase in taxable income and corresponding tax expense is mainly due to an increase in royalty income, a decrease in tax amortization and an increase in the Company’s share of taxable income from the Partnership"("Pizza Pizza Annual Report",2015).There was an increase in Deferred tax expense due to temporary timing difference between the accounting and tax basis of the Pizza Pizza and Pizza 73 Rights and Marks. The increase in the quarterly earnings is largely attributed to an increase in royalty income and a decrease in interest expense, offset by an increase in current tax expense. For the Year, earnings increased to $25.2 million compared to $25.0 million in 2014. For the Year, earnings increased due to increased royalty income and lower interest expense; however, this was offset by the $1.25 million non-cash swap termination costs and higher current income tax. There was also an increase in Earnings which was “largely attributed to an increase in royalty

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