Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A proposed new investment has projected sales of $750,000. Variable costs are 55 percent of sales, and fixed costs are $164,000; depreciation is $65,000.

 

A proposed new investment has projected sales of $750,000. Variable costs are 55 percent of sales, and fixed costs are $164,000; depreciation is $65,000. Prepare a pro forma income statement assuming a tax rate of 21 percent. What is the projected Operational Cash Flow (OCF)? (Input all amounts as positive values.) $ 150,715 $314,715 $ 108,500 $ 62,930

Step by Step Solution

3.43 Rating (150 Votes )

There are 3 Steps involved in it

Step: 1

150715 SALES 75000000 LESS VARIABLE COST 55 4... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Corporate Finance

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

8th Edition

978-0073530628, 978-0077861629

More Books

Students also viewed these Finance questions

Question

what is the most common cause of preterm birth in twin pregnancies?

Answered: 1 week ago

Question

Which diagnostic test is most commonly used to confirm PROM?

Answered: 1 week ago

Question

What is the hallmark clinical feature of a molar pregnancy?

Answered: 1 week ago