Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of

40,000 units at $20 a unit, production costs at 40%of sales price, annual fixed costs for production at

$160,000, and straight-line depreciation expense of $220,000 per year. The company tax rate is

40%, What is the annual operating cash flow of the new GPS system?