Following is the table of calculation:
Particulars | Remark | 1 |
Units Sold | Given | 40000 |
SP | Given | 22 |
Sales | SP x Units | $ 8,80,000.00 |
Production Cost | 39% of sales | $ 3,43,200.00 |
Fixed cost | Given | $ 1,40,000.00 |
EBITDA | Sales-Production Cost-Fixed Cost | $ 3,96,800.00 |
Depreciation | Given | $ 1,90,000.00 |
EBT | EBITDA-Depreciation | $ 2,06,800.00 |
Tax | 0.40% x EBT | $ 82,720.00 |
EAT | EBT-Tax | $ 1,24,080.00 |
Depreciation | Added back as non cash | $ 1,90,000.00 |
OCF | EAT+Depreciation | $ 3,14,080.00 |
So the annual operating CF = $314080
Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a...
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 $20 a unit, production costs at 37% of sales price, annual fixed costs for production at $160,000, and straight-line depreciation expense of $215,000 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?...
please help with this
P10-11 (similar to) Question Help 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 $18 a unit, production costs at 36% of sales price, annual fixed costs for production at $160,000, and straight-line depreciation expense of $180,000 per year. The company tax rate is 30%. What is the annual operating cash flow of the new GPS system? What is the...
Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 48,000 units at $18 a unit, production costs at 37% of sales price, annual fixed costs for production at $180,000, and depreciation expense (straight-line) of $240,000 per year. The company tax rate is 35%. What is the annual operating cash flow of the new GPS system?
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?
Operating cash flow. Huffman Systems has forecasted sales for its new home alarm systems to be 65,000 units per year at $40.00 per unit The cost to produce each unit is expected to be about 40 % of the sales price The new product will have an additional $490,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of $3,000,000 and will be depreciated over eight years (straight line) The company tax rate is 35%....
Operating cash flow. Huffman Systems has forecasted sales for its new home alarm systems to be 65.000 units per year at S41.00 per unit. The cost to produce each unit is expected to be about 42% of the sales price. The new product will have an additional $460,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of $3,000,000 and will be depreciated over eight years (straight line). The company tax rate is 40%. What...
NPV. Huffman Systems has forecasted sales for its new home alarm systems to be 63,000 units per year at $39.00 per unit. The cost to produce each unit is expected to be about 42% of the sales price. The new product will have an additional $490,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of $2,410,000 and will be depreciated over eight years (straight line). The company tax rate is 35%. What is the...
What is the annual operating cash flow (OCF) for a 10-year project that has annual sales of $580,000, its variable costs are 80% of sales and has annual fixed costs of $120,000. The project requires new equipment at a cost of $30,000 and installation costs of $2,000 and a plant that costs $80,000. Depreciation is under the straight line method and the equipment has an estimated life of 10 years and the plant an estimated life of 30 years. The...
P10-14 (similar to) : Question Help NPV. Huffman Systems has forecasted sales for its new home alarm systems to be 60,000 units per year at $37.00 per unit. The cost to produce each unit is expected to be about 42% of the sales price. The new product will have an additional $490,000 of fixed costs each year, and the manufacturing equipment will have an initial cost of $2,300,000 and will be depreciated over eight years (straight line). The company tax...
NPV. Miglietti Restaurants is looking at a project with the following forecasted sales: first-year sales quantity of 30,000, with an annual growth rate of 4.00% over the next ten years. The sales price per unit will start at $45.00 and will grow at 2.00% per year. The production costs are expected to be 55% of the current year's sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $2,100,000 It will be depreciated...