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To open a new store, Fanning Tire Company plans to invest $357,000 in equipment expected...

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Accounting

To open a new store, Fanning Tire Company plans to invest $357,000 in equipment expected to have a seven-year useful life and no salvage value. Fanning expects the new store to generate annual cash revenues of $318,000 and to incur annual cash operating expenses of $191,000. Fanning's average income tax rate is 30 percent. The company uses straight-line depreciation.
Required
Determine the expected annual net cash inflow from operations for each of the first four years after Fanning opens the new store.
Note: Negative amounts should be indicated by a minus sign.
\table[[,Net cash,Inflow or Outflow],[Year 1,,],[Year 2,,],[Year 3,,],[Year 4,,]]
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