Copy of Chapter Case

Copy of Chapter Case - Sales VC Fixedcosts Depreciation EBT...

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Year 0 Year 1 Year 2 Year 3 Year 4 Sales $18,700,000 $21,725,000 $28,875,000 $22,825,000 VC $6,596,000 $7,663,000 $10,185,000 $8,051,000 Fixed costs $3,400,000 $3,400,000 $3,400,000 $3,400,000 Depreciation $2,929,450 $5,020,450 $3,585,450 $2,560,450 EBT $5,774,550 $5,641,550 $11,704,550 $8,813,550 Tax $2,021,093 $1,974,543 $4,096,593 $3,084,743 Net Income $3,753,458 $3,667,008 $7,607,958 $5,728,808 + Depreciation $2,929,450 $5,020,450 $3,585,450 $2,560,450 Operating Cash Flow $6,682,908 $8,687,458 $11,193,408 $8,289,258 Net Working Capital Requirement % 20% 20% 20% 20% 20% Beginning NWC $- $3,740,000 $4,345,000 $5,775,000 Ending NWC $- $3,740,000 $4,345,000 $5,775,000 $4,565,000 NWC Cash Flow $(3,740,000) $(605,000) $(1,430,000) $1,210,000 Sale (Purchase) of Equipment $(20,500,000) Gain (Loss) on Sale of Equipment Tax Effect Net Cash from Equipment $(20,500,000) Net Cash Flow $(20,500,000) $2,942,908 $8,082,458 $9,763,408 $9,499,258 Unit Sales 68,000 79,000
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Copy of Chapter Case - Sales VC Fixedcosts Depreciation EBT...

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