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please help with thisP10-11 (similar to) Question Help Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales a

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Answer #1
Sales(40,000 * $18) $720,000
COGS($720,000 * 0.36) $259,200
Fixed costs $160,000
Depreciation $180,000
EBIT $120,800
Taxes($120,800 * 0.30) $36,240
Net income $84,560

OCF = Net income + Depreciation

OCF = $84,560 + $180,000

OCF = $264,560

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