To open a new store, Linton Tire Company plans to invest $212,000 in equipment expected to...

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Accounting

To open a new store, Linton Tire Company plans to invest$212,000 in equipment expected to have a four -year useful life andno salvage value. Linton expects the new store to generate annualcash revenues of $316,000 and to incur annual cash operatingexpenses of $195,000. Linton’s average income tax rate is 35percent. The company uses straight-line depreciation.
Required
Determine the expected annual net cash inflow / outflow fromoperations for each of the first four years after Linton opens thenew store. (Negative amounts should be indicated by a minussign.)
Year Net Cash Inflow/Outflow
1 ??? ?????
2 ???? ??????
3 ???? ?????
4 ????? ??????

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4.2 Ratings (822 Votes)

Cash flow from operating activities CFO is an accounting item that indicates the amount of money a company brings in from the ongoing regular business activities such as manufacturing and See Answer

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