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Q2. Income Statement, depreciation and OCF. The company that just started its operations invested in machinery $2 million. It plans to depreciate it evenly (linearly)
Q2. Income Statement, depreciation and OCF. The company that just started its operations invested in machinery $2 million. It plans to depreciate it evenly (linearly) over the period of 5 years. Forecasted sales will be 1,5 million yearly and various other costs (not including Depreciation) should be 0,8 million per year. The company pays interest of 0,1 million and pays 20% income tax. a. Present the forecasted (pro forma) Income statement for the above data. b. What is Operating Cash Flow, and what yearly Operating Cash Flow (OCF) this company may expect? Write a formula, make and present your calculations
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