You went on a trip to Tombstone, Arizona and stopped into a gift shop, where you began talking with the owner. You find out that she needs to apply for a small business loan and needs to calculate the net cash flow for the year 2015, and you decide to help her, in exchange for a beautiful buffalo hide robe.
For the year 2015, you think that the business will serve an average of 285 customers per day, 360 days per year (the business is closed on 5 days of the year). The average customer spends $13.66 each on small gifts. In addition, a few customers buy expensive art pieces (like the buffalo robe) and this averages about $255 per day for 360 days of the year.
The gift shop pays on average $4.55 for the small gifts it sells to each customer, and it pays $100.00 per day for the art works it sells to the major spending customers. Utilities cost the business $450 per month and miscellaneous supplies and services cost $24,000 per year. The gift shop will need to remodel and buy new capital equipment for $36512 during the year 2015. Depreciation on the building and the equipment will be $52,000 during 2015. In addition, wages will be $5.50 per hour for the 16 employees who work the equivalent of 8 hours per day, 360 days per year. There are three managers who earn salaries of $30390 per year each. Insurance and other overhead expenses will be $28,430 that year. Advertising and community donations will be $12,000 that year. The tax rate is 36 percent.
What is the net cash flow in the year 2015? (Round your answer to the nearest dollar.)
When I do this problem I end up with $1493316 in profit, $953782 in losses, and thus do the equation like this:
[(1493316-953782-52000)*0.64]+52000 to account for the depreciation.
My final answer is $364022, the answer listed as correct is $350877.
The values in the question change with each HW attempt, so I would prefer if anybody could just pinpoint where I go wrong and don't account for the $13145 I appear to be missing. Perhaps it's in the way I calculate taxes using the depreciation?