The Berndt Corporation expects to have sales of $$10$ million. Costs other than depreciation are expected to be $65\%$ of sales, and depreciation is expected to be $$1\mathrm{.}75$ million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. The federal tax rate is $21\%($ignore any possible state corporate taxes$).$ Berndt has no debt.

Set up an income statement. What is Berndt's expected net income? Its expected net cash flow? Enter your answers in dollars. For example, an answer of $$1\mathrm{.}2$ million should be entered as $1,200,000.$ Round your answers to the nearest dollar.

Net income: $

Net cash flow: $ Income and Cash Flow Analysis

The Berndt Corporation expects to have sales of $$10$ million. Costs other than depreciation are expected to be $65\%$ of sales, and depreciation is expected to be $$1\mathrm{.}75$ million. All sales revenues will be colle

than depreciation must be paid for during the year. The federal tax rate is $21\%($ignore any possible state corporate taxes$).$ Berndt has no debt.

a$.$ Set up an income statement. What is Berndt's expected net income? Its expected net cash flow? Enter your answers in dollars. For example, an answer of $$1\mathrm{.}2$ million should be entered as $1,200,000.$ Round your answers to the

nearest dollar.

Net income: $

Net cash flow: $