Financial update as of June 15 • Your existing business generates $135,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $25,714. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $20,250 of additional cash. • You also need to purchase $10,800 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 $6,750. Based on your evaluation you have______in free cash flow.
Financial update as of June 15 • Your existing business generates $135,000 in EBIT. • The corporate tax rate applicable to your business is 25%. • The depreciation expense reported in the financial statements is $25,714. • You don’t need to spend any money for new equipment in your existing cafés; however, you do need $20,250 of additional cash. • You also need to purchase $10,800 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 $6,750. Based on your evaluation you have______in free cash flow.
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 7EB: McMasters Inc. specializes in BBQ accessories. In order for the company to expand its business, they...
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Financial update as of June 15
• | Your existing business generates $135,000 in EBIT. |
• | The corporate tax rate applicable to your business is 25%. |
• | The |
• | You don’t need to spend any money for new equipment in your existing cafés; however, you do need $20,250 of additional cash. |
• | You also need to purchase $10,800 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 $6,750. |
Based on your evaluation you have______in
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