# Annual Operating Cash Flow

Answer the following two scenarios:

Scenario One: A 5-year project is expected to generate revenues of $94800, variable costs of $35200, and fixed costs of $14600. The annual depreciation is $5000 and the tax rate is 33 percent. What is the annual operating cash flow?

Answer

$18,075

$32,980

$19,700

$31,800

$34,500

Scenario Two: Junior's has a new project in mind that will increase accounts receivable by $24500, increase accounts payable by $23000, increase fixed assets by $37000, and decrease inventory by $6000. What is the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project?

Answer

$4,500

$12,600

$3,200

$28,900

$6,000

https://brainmass.com/business/cash/annual-operating-cash-flow-439331

#### Solution Preview

A 5-year project is expected to generate revenues of $94800, variable costs of $35200, and fixed costs of $14600. The annual depreciation is $5000 and the tax rate is 33 percent. ...

#### Solution Summary

This brief and concise solution, illustrates the required calculations needed to determine the annual operating cash flows for two different scenarios.