1. Chia Chia Company has a projected sales volume of RM9,650 for the second year of a proposed expansion project. Costs normally run 60 percent of sales, or about RM990 in this case. The depreciation expense will be RM100, and the tax rate is 35 percent.

Required:

1. Calculate the net income of Chia Chia Company.
2. Calculate the operating cash flow of Chia Chia Company.
3. Calculate the operating cash flow by using (i) Top-down approach and (ii) Tax shield approach.