P11-23 (similar to) Question Help Net cash flows for a marketing campaign Marcus Tube, a manufacturer of high quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 4% per year, Marcus has been unsuccessful in sharing this growth. To increase its salos, the firm is considering an aggressive marketing campaign that centers on regularly running ads in all relevant trade journals and exhibiting products at all major regional and national trade shows. The campaign is expected to require an annual tax-deductible expenditure of $149,000 over the next 5 years. Sales revenue, as shown in the income statement for 2018 totaled $20,200,000. If the proposed marketing campaign is not initiated, sales are expected to remain at this level in each of the next 5 years, 2019 through 2023. With the marketing campaign, soles are expected to rise to the levels shown in the table for each of the next 5 years; cost of goods sold is expected to remain at 80% of sales general and administrative expense (exclusive of any marketing campaign outinys) is expected to remain at 11% of sales and annual depreciation expertise is expected to remain at $500,000. Assuming a 40% tax rate, find the net cash flows over the next 5 years associated with the proposed marketing campaign The annual operating cash flow without the marketing campaign will be (Round to the nearest dollar) P11-23 (similar to) Question Help Net cash flows for a marketing campaign Marcus Tube, a manufacturer of high quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 4% per year, Marcus has been unsuccessful in sharing this growth. To increase its sales, the firm is considering an aggressi Foducts at all major regional and national trade shows. The Sales revenue, as shown in the income statement for 2018 Data Table Jhin at this level in each of the next 5 years, 2019 through 20 of the next 5 years; cost of goods sold is expected to rem xpected to remain at 11% of sales, and annual depreciation (Click on the con located on the top-right comer of the datatable below in order to copy its proposed marketing campaign contents into a spreadsheet.) Ext 5 years associated with the The annual operating cash flow Marcus Tube Income Statement for the Year Ended December 31, 2018 Sales revenue $20,200,000 Less: Cost of goods sold (80%) 16,160,000 Gross profits $4,040,000 Less: Operating expenses General and administrative expense (11%) $2,222,000 Depreciation expense 500,000 Total operating expenso $2,722.000 Earnings before interest and taxes $1,318,000 Less: Taxes (40%) 527,200 Not operating profit after taxes $790,800 Print Done Enter your answer in the answer box and then click Check Answer parts 5 remaining Clear All Check Answer P11-23 (similar to) Question Help Net cash flows for a marketing campaign Marcus Tube, a manufacturer of high-quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 4% per year, Marcus has been unsuccessful in sharing this growth. To increase its sales, the firm is considering an aggressive marketing campaign that centers on regularly running ads in all relevant trade journals and exhibiting products at all major regional and national trade shows. The campaign is expected to require an annual tax deductible expenditure of $149,000 over the next 5 years. Sales revenue, as shown in the income statement for 2018 totaled $20,200,000. If the proposed marketing campaign is not initiated, sales are expected to remain at this level in each of the next 5 years, 2019 through 2023. W each of the next 5 years; cost of goods sold is expected to remain at Data Table Vs) is expected to remain at 11% of sales and annual depreciation exper the next 5 years associated with the proposed marketing campaign The annual operating cash flow with (Click on the icon located on the top right comer of the datatable below in order to copy its contents into a spreadsheet.) Marcus Tube Sales Forecast Year Sales revenue 2019 $20,700,000 2020 21,200,000 2021 21,700,000 2022 22,700,000 2023 23,700,000 Print Done Enter your answer in the answer box and then click Check Answer 5 parts remaining CHA Check Anme