m corp had $1,800 of supplies on hand at january 1, 20x7. during 20x7, supplies with a cost of $7,000 were purchased. at december 31,20X7, the actual supplies on hand amounts to $2,300.after the adjustments are recorded and posted at december 31,20x7, the balances in the supplies and supplies expense accounts will be

Supplies Balance = Supplies on Hand
Supplies Expense Balance = Supplies Beginning + Purchases - Supplies Ending

The question is:
X company has provided the following data concerning an investment project that has been proposed.
Initial investment $890,000
Annual cash receipts $534,000
Life of the project 5 years
Annual cash expenses $267,000
Salvage value $45,000
The company's tax rate is 30%. For tax purposes, the entire initital investment will be depreciated over 3 years without a reduction for salvage value. The company uses a discount rate of 10%. The net present value of the project is closest to: The answer is $59,442.
My problem is I don't know enough to solve this problem. I have several questions: 1. Does the tax rate effect this problem? If so how? Also, does the depreciate play a part in the answer? What I believe is correct is that the initial investment is $890,000 & the salvage value in 5 years will be $45,000 x .621 for a value of $27,945. I am not sure if the annual cash flow is $534,000-$267,000 for a total of $267,000. Thanks for your help

bbruhn, please start your own thread for your question.