Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started