About a year after arriving at MTU, Ahmed's sister finds that school was not for her so she decides to open an art gallery to sell Moroccan art in Calumet, which is becoming a mecca for art tourists. She will need to apply for a small business loan and a major requirement is to calculate the net cash flow for the year 2024, and you decide to help her, in exchange for a beautiful painting
For the year 2024, you think that the business will serve an average of 181 customers per day, 360 days per year (the business is closed on 5 days of the year). The average customer spends $15.04 each on small gifts. In addition, a few customers buy expensive art pieces and this averages about $150 per day for 360 days of the year. This art shop pays on average $3.35 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. This art shop will need to remodel and buy new capital equipment for $40271 during the year 2024. Depreciation on the building and the equipment will be $52,000 during 2024. 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 $29722 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 34 percent. What is the net cash flow in the year 2024? (Round your answer to the nearest dollar.)