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Homework answers / question archive / Operating cash flow, Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS? system: annual sales of 40,000 units at $25 a? unit, production costs at 36?% of sales? price, annual fixed costs for production at $140,000?, and? straight-line depreciation expense of $210,000 per year

Operating cash flow, Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS? system: annual sales of 40,000 units at $25 a? unit, production costs at 36?% of sales? price, annual fixed costs for production at $140,000?, and? straight-line depreciation expense of $210,000 per year

Finance

Operating cash flow, Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS? system: annual sales of 40,000 units at $25 a? unit, production costs at 36?% of sales? price, annual fixed costs for production at $140,000?, and? straight-line depreciation expense of $210,000 per year. The company tax rate is 38?%.

What is the annual operating cash flow of the new GPS?system?

What is the annual operating cash flow of the new GPS?system?

?$?(Round to the nearest? dollar.)

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Statement showing computation  
Particulars Amount(in$)
Sales (40000*25) 1000000
Less: Unit Production cost (1000000*0.36) 360000
Less: Fixed cost 140000
Less: Depreciation 210000
EBIT (1000000-360000-140000-210000) 290000
Less: Interest 0
EBT 290000
Less: Tax (290000*0.38) 110200
Net Income 179800
Add: Depreciation 210000
Operating cashflow 389800

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