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Peter's Popcorn has forecasted the following sales and costs for a new popcorn​ machine: annual sales...

Peter's Popcorn has forecasted the following sales and costs for a new popcorn​ machine: annual sales of 40,000 units at​ $24 a​ unit, production costs at 35​% of sales​ price, annual fixed costs for production at $150,000​, and​ straight-line depreciation expense of $215,000 per year. The company tax rate is 40​%.

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

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Answer #1

Annual operating cash flow = malowanie tome $370,400 $370,400 ((24*0.65*40000) - 150000) *0.6+(215000*0.4)

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