Natural Foods Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 9,800 units at $36 each. The new manufacturing equipment will cost $148,600 and is expected to have a 10-year life and a $11,400 residual value. Selling expenses related to the new product are expected to be 5% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis:

Direct Labor $6.10

Direct Materials 20.00

Fixed factory overhead-depreciation 1.40

Variable factory overhead 3.10

Total $30.60

Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar.

(13 unread) - markyoung x Martinez Fall 2020 ECOI X CengageNOWv2 | Online x up Messages X Mail - Young, Mark T - OU X Course Hero X + X C D v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Email-school = Introduction to Soci. Connect-Biol 1107 : D2L ] MATH MindTap - Cengage.. #s child support . Rick Barker's Music.. Digital Resources f... Quesitons for Discu. Chapter 26 homework a Book Show Ma How 1. TMM.26.01 Determine Cash Flows Natural Foods Inc. Is planning to Invest In new manufacturing equipment to make a new garden tool. The new garden tool Is expected to generate additional annual sales of 9,600 units at $36 each. The new manufacturing equipment will cost $148,600 and Is expected to 2. TMM.26.02 have a 10-year life and a $11,400 residual value. Selling expenses related to the new product are expected to be 5% of sales revenue. The cost to manufacture the product Includes the following on a per-unit basis: 3. TMM.26.03 Direct labor $6.10 Direct materials 20.00 4. TMM.26.04 Fixed factory overhead-depreciation 1.40 5. TMM.26.05 Variable factory overhead 3.10 Total $30.60 6. BE.26.01.ALGO 7. BE.26.02.ALGO Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use the minus sign to Indicate cash outflows. Do not round your Intermediate calculations but, If required, round your final answers to the nearest dollar. Natural Foods Inc. B. BE.26.03.ALGO Net Cash Flows 9. BE.26.04.ALGO Year 1 Years 2-9 Last Year Initial Investment 10. EX.26.04.ALGO Operating cash flows: 11. EX.26.07.ALGO Annual revenues selling expenses 12. EX.26.09.ALGO Cost to manufacture 13. EX.26.12.ALGO Net operating cash flows 14. EX.26.14.ALGO Total for Year 1 Total for Years 2-9 (operating cash flow) Residual value Total for last year Progress: 10/14 items Check My Work Previous Next Assignment Score: 35.7196 save and Exit Submit Assignment for Grading OMO + 9:09