6 RO Determine Cash Flows Natural Foods Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 6,600 units at $40 each. The new manufacturing equipment will cost $107,200 and is expected to have a 10-year life and a $8,200 residual value. Selling expenses related to the new product are expected to be 5% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: Direct labor Direct materials 22.30 Fixed factory overhead-depreciation 1.50 Variable factory overhead 3.40 Total $34.00 Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar. Natural Foods Inc. Net Cash Flows Year 1 Years 2-9 Last Year Initial investment Operating cash flows: Annual revenues Selling expenses 1 Cost to manufacture Net operating cash flows Total for Year! Vilm/takeAssignment/assignmentOverview.do Show Me How Print Item eBook DULCSON Calculator BURU 22.30 1.50 Direct materials Fixed factory overhead-depreciation Variable factory overhead Total 3.40 $34.00 Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar Natural Foods Inc. Net Cash Flows Years 2.9 Last Year Initial investment Operating cash flows: Annual revenues Selling expenses Cost to manufacture Net operating cash flows Q10 .00 Total for Year 1 Total for Years 2-9 (operating cash flow) Residual value Total for last year Previous Next > Check My Work Submit Assignment for Grading Save and Exit All work saved