Quiz= cash flow | Business & Finance homework help


1.Brock Florist Congregation bought a new gift deal for $29,000.  It was classified as a light-duty deal.  . The congregation sold its gift deal succeeding three years of utility.  If a five-year condition and MACRS,  it used for the deterioration register, what is the succeeding-tax specie stream from the sale of the deal (use a 40% tax reprove)

If  the sales appraisement was $16,000, what would be the succeeding-tax specie stream?

If the sales appraisement was $9,000, what would be the succeeding-tax specie stream?

If the sales appraisement was $4,000, what would be the succeeding-tax specie stream?

 

2.Cool Water, Inc. sells bottled introduce.  The solid keeps in register malleable bottles at 9% of the monthly incomplete sales.  These malleable bottles require $0.006 each.  The monthly sales for the leading filthy months of the hereafter year are as follows:

January:2,000,000

February:2,500,000

March:2,700,000

April:3,300,000

What is the shift in agoing principal for January?

What is the shift in agoing principal for February?

What is the shift in agoing principal for March?

3.Grady Precision Measurement Tools has forecasted the aftercited sales and requires for a new GPS plan:  annual sales of 40,000 individuals at $19 a individual, genesis requires at 36% of sales appraisement, annual agricultural requires for genesis at $130,000, and unswerving-length deterioration expenditure of $210,000 per year.  The congregation tax reprove is 35%.  What is the annual loose specie stream of the new GPS plan?

4.Fat Tire Bicycle Congregation floatingly sells 40,000 bicycles per year.  The floating bike is a test balloon-tire bike selling for $120, after a while a genesis and shipping require of $35.  The congregation is thinking of introducing an off-road bike after a while a incomplete selling appraisement of $375 and a genesis and shipping require of $300.  The incomplete annual sales for the off-road bike are 14,000.  The congregation achieve destroy sales in fat-tire bikes of 8,500 individuals per year if it introduces the new bike, thus-far.  What is the erosion require from the new bike?  Should Fat Tire set-on-foot surrendering the off-road bike?

What is the erosion require from the new bike?

Should Fat Tire set-on-foot surrendering the off-road bike?  (Select the best rejoinder.)

A.Yes, because it contributes an additional $327,500 of cash flow.

B.No, because it does not improve the profitability of the company.

5. Grady Precision Measurement Tools has forecasted the aftercited sales and requires for a new GPS plan:  annual sales of 47,000 individuals at $18 a individual, genesis requires at 39% of sales appraisement, annual agricultural requires for genesis at $190,000.  The congregation tax reprove is 35%.  What is the annual loose specie stream of the new GPS plan?  Should Grady Precision Measurement Tools add the GPS plan to its set of products?  The primal bombardment is $1,340,000 for manufacturing equipment, which achieve be depreciated aggravate six years (unswerving length) and achieve be sold at the end of five years for $380,000.  The require of principal is 11%.

What is the annual loose specie stream of the new GPS plan?

What is the succeeding-tax specie stream of the GPS plan at dispensation?

What is the NPV of the new GPS syatem?

Should Grady Precision Measurement Tools add the GPS plan to its set of products?  (Select the best rejoinder.)

A.No, accordingly the NPV is denying which resources the incomplete annual reprove of repay on the design is short than the require of principal.

B.Yes, accordingly the design achieve genereprove sufficient lucre to communicate investors an liberal agree.