in EBIT The corporate tax rate applicable to your business is 25%. The depreciation expense reported in the financial statements is $23,429. You don't need to spend any money for new equipment in your existing cafés: however, you do need $18.450 of additional cash. You also need to purchase $9,840 in additional supplies-such as tableclothes and napkins, and more formal tableware-on credit. . It is also estimated that your accruals, including taxes and wages payable, will increase by $6.150. Based on your evaluation you have Free cash flow can be used for varid cash flow? Acquiring operating asset Distributing dividends to s $146,42918,450 $107,069 $152.579 $103,379 in free cash flow. ng distributing it to stockholders and debtholders. Which of the following is not a use of fr
in EBIT The corporate tax rate applicable to your business is 25%. The depreciation expense reported in the financial statements is $23,429. You don't need to spend any money for new equipment in your existing cafés: however, you do need $18.450 of additional cash. You also need to purchase $9,840 in additional supplies-such as tableclothes and napkins, and more formal tableware-on credit. . It is also estimated that your accruals, including taxes and wages payable, will increase by $6.150. Based on your evaluation you have Free cash flow can be used for varid cash flow? Acquiring operating asset Distributing dividends to s $146,42918,450 $107,069 $152.579 $103,379 in free cash flow. ng distributing it to stockholders and debtholders. Which of the following is not a use of fr
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 7P
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Suppose you are the only owner of a chain of coffee shops near universities. Your current cafés are doing well, but you are interested in starting a fine-dining restaurant. You decide to use the cash generated from your existing business to enter into a new business. Your accountant provides you with the following data on your current financial performance:
Financial update as of June 15
• | Your existing business generates $123,000 in EBIT. |
• | The corporate tax rate applicable to your business is 25%. |
• | The depreciation expense reported in the financial statements is $23,429. |
• | You don’t need to spend any money for new equipment in your existing cafés; however, you do need $18,450 of additional cash. |
• | You also need to purchase $9,840 in additional supplies—such as tableclothes and napkins, and more formal tableware—on credit. |
• | It is also estimated that your accruals, including taxes and wages payable, will increase by $6,150. |
Based on your evaluation you have ___________in free cash flow .
(I need help finding the Free Cash Flow.)
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