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  • Accounting Case - Excel Appendecies

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    Rohan Singh
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    The document summarizes the items that increase and decrease a company's cash flows in Year 1. Items that increase cash flows include rent income of $30,000, utility cost savings of $30,600, and salary savings of $60,000, totaling $140,100. Items that decrease cash flows include losses of advertisers and members totaling $30,980 and other expenses totaling $36,000, totaling $66,980. The net increase in cash flows is $73,120, which after applying an 18% tax rate and $270 depreciation tax shield results in a net cash flow of $60,228.40.

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    Accounting Case- Excel Appendecies

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    The document summarizes the items that increase and decrease a company's cash flows in Year 1. Items that increase cash flows include rent income of $30,000, utility cost savings of $30,600, and salary savings of $60,000, totaling $140,100. Items that decrease cash flows include losses of advertisers and members totaling $30,980 and other expenses totaling $36,000, totaling $66,980. The net increase in cash flows is $73,120, which after applying an 18% tax rate and $270 depreciation tax shield results in a net cash flow of $60,228.40.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views2 pages

    Accounting Case - Excel Appendecies

    Uploaded by

    Rohan Singh
    The document summarizes the items that increase and decrease a company's cash flows in Year 1. Items that increase cash flows include rent income of $30,000, utility cost savings of $30,600, and salary savings of $60,000, totaling $140,100. Items that decrease cash flows include losses of advertisers and members totaling $30,980 and other expenses totaling $36,000, totaling $66,980. The net increase in cash flows is $73,120, which after applying an 18% tax rate and $270 depreciation tax shield results in a net cash flow of $60,228.40.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 2

    Items that Increase Cash Flows Year 1 Audit Trail

    Rent From YG 30000 2500*12


    Reduction in Utility Costs 30600 (6000+2500)*30%*12
    Laid off Hourly 19500 (15*5*5*52)
    Save one salaried worker 60000 180000/3
    Total 140100

    Items That Decrease Cash Flows


    Loss of 2 advertisers 12000 30000/(5/2)
    Loss of membership from adult members 16000 10*80%*2000
    Loss of membership from junior members 6000 5*80%*1500
    Loss of non-members 7280 52*2*35*2
    Severance package to laid-off hourly waged staff 3000
    Squash coach revenue 6000 (1000*12*/2
    Retirement Package 10000
    Rent from vending machine 620 500+120
    Increasing Maintenance fee 1080 (500+1000)*12*(1+6%)
    Modifications of the court 3000
    Total 64980

    The net effect on cash flows 75120


    Income Tax Rate 18%
    Depreciation Tax Shield 270
    The net effect on cash flows after tax shield 61868.4 (75120*(1-18%))+270
    Items that Increase Cash Flows Year 1 Audit Trail
    Rent From YG 30000 2500*12
    Reduction in Utility Costs 30600 (6000+2500*30%*12
    Laid off Hourly 19500 (15*5*5*52)
    Save one salaried worker 60000 180000/3
    Total 140100

    Items That Decrease Cash Flows


    Loss of 2 advertisers 12000 30000/(5/2)
    Loss of membership from adult members 16000 10*80%*2000
    Loss of membership from junior members 6000 5*80%*1500
    Loss of non-members 7280 52*2*35*2
    Squash coach revenue 6000 (1000*12*(1-18%))/2
    Rent from vending machine 620 500+120
    Increasing Maintenance fee 19080 (6000+12000)*12*(1+6%)
    Total 66980

    The net effect on cash flows 73120


    Income Tax Rate 18%
    Depreciation Tax Shield 270
    The net effect on cash flows after tax shield 60228.4

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