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ABC Company is considering a new project. The project is expected to generate annual sales of...

ABC Company is considering a new project. The project is expected to generate annual sales of $65476, variable costs of $18689, and fixed costs of $9650. The depreciation expense each year is $10884 and the tax rate is 25 percent. What is the annual operating cash flow

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Ans 30573.75

SALES                          65,476
LESS VARIABLE COST                          18,689
LESS FIXED COST                            9,650
LESS DEPRECIATION                          10,884
EARNING BEFORE TAX                          26,253
LESS TAX @ 25%                      6,563.25
EARNING AFTER TAX                    19,689.75
ADD DEPRECIATION                          10,884
OPERATING CASH FLOW                    30,573.75

jeff jeffy answered 1 year ago
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