Suppose you are the only owner of a chain of coffee shops near universities. Your current cafes are doing well, but you are interested in starting a fine-dining restaurant You decide to use the cash generated from your existing business to enter Into a new business. Your accountant provides you with the following data on your current financial performance: Financial update as of June 15 Your existing business generates S 123,000 in EBIT. The corporate tax rate applicable to your business is 35%. The depreciation expense reported in the financial statements is $23,429. You don't need to spend any money for new equipment in your existing cafes; however, you do need $18,450 of additional cash. You also need to purchase $9,840 in additional supplier such is cloth table clothes and napkins, and more formal tableware - on credit. It is also estimated that your accruals, including taxes and wages payable, will increase by $6,150.
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Home » Business » Suppose you are the only owner of a chain of coffee shops near universities. Your current cafes are doing well, but you are interested in starting a fine-dining restaurant You decide to use the cash generated from your existing business to enter