fegnsto nellob teegisl ort zon triompeQuestion 3In 2019, Rylan Enterprises' net income increased by $2.5 million while itsdepreciation expense decreased by $500,000, accounts receivableincreased by $2,000,000 and accounts payable increased by $1,000,000.Rylan's total corporate tax rate is 40%. How did the decline in Rylan'splacer depreciation expense impact its end-of-year cash balance?Question 4Suppose Global had an additional $1 million depreciation expense in2018. If Global's tax rate on pretax income is 26%, what would thisexpense impact Global's earnings? How would it impact Global's cashbalance at the end of the year?Tabivorqaston erit ob noitsmoin

Depreciation is a accounting method used to allocate the cost of a tangible asset over it's useful…

hellob jagiel om aan thom Question 3 In 2019, Rylan Enterprises' net income increased by $2.5 million while its depreciation expense decreased by $500,000, accounts receivable increased by $2,000,000 and accounts payable increased by $1,000,000. Rylan's total corporate tax rate is 40%. How did the decline in Rylan's depreciation expense impact its end-of-year cash balance? Question 4 nego rainW Suppose Global had an additional $1 million depreciation expense in 2018. If Global's tax rate on pretax income is 26%, what would this expense impact Global's earnings? How would it impact Global's cash balance at the end of the year? CELVONG

hellob jagiel om aan thom Question 3 In 2019, Rylan Enterprises' net income increased by $2.5 million while its depreciation expense decreased by $500,000, accounts receivable increased by $2,000,000 and accounts payable increased by $1,000,000. Rylan's total corporate tax rate is 40%. How did the decline in Rylan's depreciation expense impact its end-of-year cash balance? Question 4 nego rainW Suppose Global had an additional $1 million depreciation expense in 2018. If Global's tax rate on pretax income is 26%, what would this expense impact Global's earnings? How would it impact Global's cash balance at the end of the year? CELVONG

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Part 1 of 2 Points: 0 of 2 Save Suppose a firm's tax rate is 25%. K a. What effect would a $9.13 million operating expense have on this year's earnings? What effect would it have on next year's earnings? b. What effect would a $11.35 million capital expense have on this year's earnings if the capital expenditure is depreciated at a rate of $2.27 million per year for five years? What effect would it have on next year's earnings? a. What effect would a $9.13 million operating expense have on this year's earnings? What effect would it have on next year's earnings? (Select all the choices that apply.) A. A $9.13 million operating expense would be immediately expensed, increasing operating expenses by $9.13 million. This would lead to a reduction in taxes of 25% x $9.13 million = $2.28 million. B. A $9.13 million operating expense would be immediately expensed, increasing operating expenses by $9.13 million. This would lead to an increase in taxes of 25% x $9.13 million = $2.28 million. C.…
ssignment i You are considering an investment in Fields and Struthers, Incorporated, and want to evaluate the firm's free cash flow. From the income statement, you see that Fields and Struthers earned an EBIT of $62 million, had a tax rate of 21 percent, and its depreciation expense was $5 million. Fields and Struthers's gross fixed assets increased by $32 million from last year to this year. The firm's current assets increased by $20 million and spontaneous current liabilities increased by $12 million. Calculate Fields and Struthers's NOPAT. Note: Enter your answer in millions of dollars rounded to 2 decimal places. (i.e., Enter 5,500,000 as 5.50.) NOPAT Operating cash flow 43.4 million Calculate Fields and Struthers's operating cash flow. Note: Enter your answer in millions of dollars rounded to 2 decimal places. (i.e., Enter 5,500,000 as 5.50.) Investment in operating capital Saved million Calculate Fields and Struthers's investment in operating capital. Note: Enter your answer in…
question 7 You have forecast pro forma earnings of $1,174,000.This includes the effect of $154,000 in depreciation. You also forecast a decrease in working capital of $109,000 that year. What is your forecast of free cash flows for that year? The free cash flows from earnings will be $________.(Round to the nearest dollar.)
Question 2 Consider a 100,000 sqf office building with the following cash flows: The gross rent in year 1 is $30/sqf/year and the rents are expected to grow at 2% per year. The operating expenses in the first year are $5/sqf/year and are expected to increase at 3% per year. There are no capital expenditures. All cash flows are in arrears. The discount rate for the property is 9%. a. What is the value of the building if the building will be held and rented indefinitely? What is the cap rate at time 0? b. What is the value of the building if the building is sold at the end of 10 years at a 8% cap rate? What is the cap rate at time 0?
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What is the present value (in S) of cash flows 1-3 at the end of year 3, assuming a 6% interest rate (compounded annually)? End of year 1 2 3 Your Answer: Answer Cash flow $540 805 780