Q#3 (12 pts) Consider the following financial data for Not-Real Corporation Company Not-Real manufactures technology products. It plans to expand its manufacturing operations. The expected data from the anticipated first year operation is shown in the following Table. (a) Determine the taxable income during the year (b) Calculate the net income during the year (c) Determine the net cash flow from this project during the first year (d) Calculate the working capital requirement during the year (working capital requirement = use of cash - source of cash). Selected Data of Company Not-Real (Dollars) Sales 1,500,000 Manufacturing costs Direct Materials Direct Labor Overhead Depreciation 150,000 200,000 100,000 200,000 Operating Expenses Equipment Purchase Borrowing to Finance Equipment Purchase 150,000 400,000 200,000 Increase in Inventories Decrease in Accounts Receivable Increase in Wages Payable Decrease in Notes Payable 100,000 20,000 30,000 40,000 Income Taxes Interest Payment on Financing 272,000 20,000 Q#3 (12 pts) Consider the following financial data for Not-Real Corporation Company Not-Real manufactures technology products. It plans to expand its manufacturing operations. The expected data from the anticipated first year operation is shown in the following Table. (a) Determine the taxable income during the year (b) Calculate the net income during the year (c) Determine the net cash flow from this project during the first year (d) Calculate the working capital requirement during the year (working capital requirement = use of cash - source of cash). Selected Data of Company Not-Real (Dollars) Sales 1,500,000 Manufacturing costs Direct Materials Direct Labor Overhead Depreciation 150,000 200,000 100,000 200,000 Operating Expenses Equipment Purchase Borrowing to Finance Equipment Purchase 150,000 400,000 200,000 Increase in Inventories Decrease in Accounts Receivable Increase in Wages Payable Decrease in Notes Payable 100,000 20,000 30,000 40,000 Income Taxes Interest Payment on Financing 272,000 20,000