User Account

All Pages

Calculate the change in net working capital

Assignment Help Financial Accounting
Reference no: EM132904727

Cost of the new project $4,000,000

Installation costs $100,000

Estimated unit sales in year 150,000

Estimated unit sales in year 2 75,000

Estimated unit sales in year 3 40,000

Estimated sales price in year 1 $150

Estimated sales price in year 2 $175

Estimated sales price in year 3 $160

Variable cost per unit $120

Annual fixed cost $50,000

Additional working capital needed $435,000

Depreciation method 3 years straight-line method, no salvage value

Texas Rok's tax rate 40%

Texas Rok's cost of capital 13%

Problem 1: Calculate operating cash flow and the change in net working capital.

Reference no: EM132904727

Questions Cloud

Human resources-corporate social responsibility : This week, we focus on technology and how it has influenced Human Resources, Corporate Social Responsibility, and Risk Management.
What business is good during this time of pandemic : What business is good during this time of pandemic? Give 5 examples which can be use in a feasibility study.
How you could apply the 3-step approach : Provide an example of how you could apply the 3-Step Approach to solve an ethical problem you are experiencing at work or have experienced at work
Italian and french renaissance architecture : Briefly explain three fundamental differences between Italian and French Renaissance architecture.
Calculate the change in net working capital : Calculate operating cash flow and the change in net working capital. Estimated sales price in year 3 $160. Estimated sales price in year 2 $175.
Explain eight function of marketing : Clearwater Seafoods sells lobster in China. What considerations would Clearwater Seafoods have to take into account to sell lobster in China. explain with eight
Testing knowledge after security awareness training : What kind of metrics would be useful that are based on testing knowledge after security awareness training?
What amount will debit the deferred gain by in first year : Assume you are preparing the journal entries in the books of the lessee, what amount you will debit the deferred gain by in the first year?
What intangible asset should be initially recorded by michel : At the time of exchange, the intangible asset should be initially recorded by Michelle Company at? Michelle Company. exchanges the rights to distribute product

Reviews

Write a Review

Financial Accounting Questions & Answers

  Describe what valuation method you believe companies

Describe what valuation method you believe companies should use to value pension assets – Market-Rated Value or Fair Value. State at least three reasons for your position.

  The project is on retail storeuse the cost objects and

the project is on retail storeuse the cost objects and management method that were before defined in the project to

  Estimate percent of remaining life of depreciable property

Estimate the percent of remaining life of depreciable property and equipment, assuming straight-line depreciation and no residual value. Round to one decimal place.

  What will you have at the end of year on the investment

What will you have at the end of year 7 if you can earn 5% per year on the investment? SHOW all work using TVM buttons on the TI BAII Plus Calculator

  Objectives1 demonstrate an ability to provide eliminating

objectives1 demonstrate an ability to provide eliminating as well as adjusting entries in the preparation of

  Manufacture the spray containers

The company has contacted a number of packaging suppliers to determine whether it is better to buy or manufacture the spray containers. The lowest quote for the containers is $1.87 per 30 units.

  Break-even-analysis

Break-even-analysis - What effect would the purchase of the new machine have on Acme's break-even point in units

  Discuss the major financial statements in detail

Discuss the major financial statements in detail. What formats are used? What significant trends (over three years) can you find? What is the future forecast, or what do the pro forma statements indicate?

  Prepare the journal entry to reflect the accounting

Complete the pension work sheet for 2013. Indicate (credit) entries by parentheses. Calculated amounts should be supported - Prepare the journal entry to reflect the accounting for the company's pension plan for the year ending December 31, 2013.

  What is the fitted value of y given x

What is the fitted value of Y given X = E[X]? (Hint: remember, in this lesson we use the expectation E[X] to represent the mean X.)

  Create record for the old country company require at january

Record the above transactions, and any necessary adjusting entries for The Old Country Company required at January 31, 2022

  Which is most desirable project based on net present value

Doug’s Custom Construction Company is considering three new projects, each requiring an equipment investment of $22,440. Each project will last for 3 years and produce the following net annual cash flows. Compute the net present value of each project..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd