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    Annual Operating Cash Flow

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    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

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    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.

    $2.19