Need to create an income statement and cash flow statement. Show annualized entries for revenue, itemized expenses taxable income, taxes, investment activities and net cash flow. Company, Lakeview Products, is considering a new injection molding machine. uses MARR of 10%, effective income tax rate is 24%. The injection molding machine would depreciate using 7-year MACRS. Useful life: 8 years. Below is all the information given to create income statement.

Project Blue data: Equipment cost: The purchase cost is $700,000 before taxes. The purchase is subject to 5 % sales tax. The total cost for freight and handling for the injection molding machine is expected to be $65,000. The total cost to install the injection molding machine is $32,000. Testing and startup costs to place the injection molding machine into service are estimated to be $27,000. It is estimated that the injection molding machine can be sold as salvage for a total of $240,000 at the end of the project. This machine requires one operator working per shift and there are two shifts. The cost of each operator is $41.00 per hour and they each work 2000 hours per year. Total annual direct materials are estimated at $370,000. Manufacturing overhead exclusive of depreciation is expected to be $220,000 per year. Revenues: Expected to be $950,000 for year 1 using this machine and then increase by 2% each year thereafter throughout the project