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Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: ann

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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

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