Question No.

3
Sales $ 740,000.00
Less: V.C (50% sale) $ 370,000.00
Less: F.C $ 173,000.00
Less: Depreciation $ 75,000.00
EBIT $ 122,000.00
Less: Tax 35% $ 42,700.00
EBT $ 79,300.00
Add: Depreciation $ 75,000.00
Operating Cashflow $ 154,300.00

Year Book Value Depreciation Ending Value

1 $ 468,000.00 $ 58,500.00 $ 409,500.00
2 $ 409,500.00 $ 58,500.00 $ 351,000.00
3 $ 351,000.00 $ 58,500.00 $ 292,500.00
4 $ 292,500.00 $ 58,500.00 $ 234,000.00
5 $ 234,000.00 $ 58,500.00 $ 175,500.00
6 $ 175,500.00
$ 72,000.00
$ 103,500.00
$ 0.35
$ 36,225.00
$ 72,000.00
$ 108,225.00
Question No. 4 Question No. 5
Sales $ 740,000.00 Sales $ 96,000.00
Less: Cost $ 47,000.00 Less: Cost $ 49,000.00
Less: Depreciation $ 128,000.00 Less: Depreciation $ 4,500.00
EBIT $ 565,000.00 EBIT $ 42,500.00
Less: Tax 34% $ 192,100.00 Less: Tax 35% $ 14,875.00
Net Incom $ 372,900.00 Net Incom $ 27,625.00
 Paper Question:
Solution
References 0 Year - 1 Year - 2 Year - 3
Volume $ 750,000.00 $ 1,500,000.00 $ 2,250,000.00
Sale Price $ 3.0000 $ 3.1500 $ 3.3075
Variable Cost $ 0.0832 $ 0.0865 $ 0.0900
Fixed Cost $ 0.0420 $ 0.04 $ 0.0463
Total Sales $ 2,250,000.00 $ 4,725,000.00 $ 7,441,875.00
Total Variable Cost $ 62,400.00 $ 129,792.00 $ 202,475.52
Total Fixed Cost $ 31,500.00 $ 66,150.00 $ 104,186.25
Operating Cashflow $ 2,156,100.00 $ 4,529,058.00 $ 7,135,213.23
 Year - 4
$ 3,000,000.00
$ 3.4729
$ 0.0936
$ 0.05
$ 10,418,625.00
$ 280,766.05
$ 145,860.75
$ 9,991,998.20