Brewtus is considering adding a microbrewery onto one of its…

Brewtus is considering adding a microbrewery onto one of its existing restaurants. This will entail an increase in inventory of $8700, an increase in accounts payables of $2300, and an increase in property, plant, and equipment of $48,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is ________.

You purchased a machine for $1 million three years ago and h…

You purchased a machine for $1 million three years ago and have been applying straight-line depreciation to zero for a five-year life. Your tax rate is 21%. If you sell the machine today (after three years of depreciation) for $550,000, what is your incremental cash flow from selling the machine?

Brutus Co plans to launch a new type of indelible ink pen. A…

Brutus Co plans to launch a new type of indelible ink pen. Advertising for the new product will be heavy and will cost the company $8 million, although the company expects general revenues of $280 million next year from sources other than sales of the new pen. If the company has a corporate tax-rate of 35% on its pretax income, what effect will the advertising for the new pen have on its taxes?