Problem 7

You are opening your own business and estimate the following expenses and revenues:

Revenues year 1 $315,000 growing at 7% thereafter

Cost of good sold year 1 $125,000 growing at 6% thereafter

Operating expense year 1 $35,000 growing at 5% thereafter

Taxes all years 24% per year

Depreciation $40,000 in year 1, $44,000 in year 2, $39,000 in year 3

Cash flows from operations for Year 1________, Year 2________ Year 3___________