Question
1. XYZ Corp. expects the following revenues, cash expenses, and depreciation charges in the future: Year 1 2 3 Revenues $89,000 $106,000 $145,000 Cost of
1. XYZ Corp. expects the following revenues, cash expenses, and depreciation charges in the future:
Year 1 2 3
Revenues $89,000 $106,000 $145,000
Cost of goods sold $38,000 $ 49,000 $53,000
Selling expenses $11,000 $ 13,000 $14,000
Interest expense $21,000 $ 23,000 $24,000
Interest revenue $7,000 $ 9,000 $11,000
Other cash operating expense$10,000 $ 11,000 $12,000
Depreciation $ 9,500 $ 13,500 $15,000
This business is in the 22 percent tax bracket. Please compute the after-tax cash flows from operations for each of the years. After tax operating cash flow for Year 1_____________ Year 2___________Year 3___________
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