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May 6th, 2015
Anonymous
Category:
Business Finance
Price: $5 USD

Question description

Your company has decided to produce a new line of television/electronic media player.  You estimate that your company will sell 51,000 per year, and that this product will sell for $750 each.  The plant and equipment (new fixed assets) needed to manufacture this product costs $22,400,000 and will be depreciated on a straight-line basis over the seven year project.  Additional manufacturing costs to produce the media players would total $16,980,000 each year.  The tax rate is 40%.  Sketch a simplified income statement and calculate the firm’s operating cash flow. (That is, explain what goes on each line of the income statement)


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