A new firm expects to generate Sales of  $124,900.  POINT BLANK has variable costs of $77,500, and fixed costs of $18,000. The per-year depreciation is $4,300 and the tax rate is 35 percent.    What is the annual operating cash flow?

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Q: We hope to increase sales by 25% next year by investing in PP&E. We booked $1,500,000 in sales…

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A: Formulas that are used:-

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A: Calculation of annual operating cash flow: Excel workings:

Q: 19

A: The formula to calculate annual depreciation using straight line is given below:

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A: Change in working capital is difference between current assets and current laibilties.

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A: Computation of NPV (3 cases):

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A: a) Average annual rate of return = Average Annual Earning per year / Investment value

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A: Calculate the cash flow from project as follows:

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A: Introduction: Cash flows are the movement of real or virtual money within the organization due to…

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A: Annual Operating Cash Flow: It is a measure of  how much  cash generated by a company's typical…

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A: Excel Spreadsheet:

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A: Sales = $ 550,000 Variable cost ratio = 40% Variable cost = 550,000*0.40 = 220,000

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.