Question
MLP Financial Group is preparing a pro forma statement for next year. It estimates sales at 12,840 units with a selling price of $43 per
MLP Financial Group is preparing a pro forma statement for next year. It estimates sales at 12,840 units with a selling price of $43 per unit. Variable costs are estimated at $21 per unit. Fixed assets of $868,000 will be depreciated straight-line to zero over seven years. Annual fixed costs are $104,660 and rent payments are $11,050. The tax rate is 35%. The annual operating cash flow is ______.
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Valuation Measuring and managing the values of companies
Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel
5th edition
978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470
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