Question
TDL Corporation generated sales of 900 bicycles at a selling price of $900 each. The fixed costs are $300,000 and variable costs per unit
TDL Corporation generated sales of 900 bicycles at a selling price of $900 each. The fixed costs are $300,000 and variable costs per unit are $550. Assume that variable costs and fixed costs are both cash costs. The annual depreciation of the machinery is $100,000. Calculate the annual operating cash flow if the corporate tax rate is 34%.
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