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.