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Karma Fisker has provided the following information. Annual sales at their California location = 546 cars Average selling price = $52,000 per car Average cost

Karma Fisker has provided the following information.

Annual sales at their California location = 546 cars

Average selling price = $52,000 per car

Average cost = $46,000 per car

Fixed cost including advertising and labor = $3,000,000 per year

The equipment cost is $2,000,000 and falls under 5 years MACRS. The depreciation rates are

Year 1 2 3 4 5 6
Rate 20% 32% 19.2% 11.52% 11.52% 5.76%

The tax rate is 20%. What is the operating cash flow for Year 2 if you ignore the side effects of the questions.

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