Rosey's Operating Cash Flows

Rosey Inc. sales revenues is RM$26\mathrm{.}8$ million in Year $1,$ which is expected to increase by $5\%$ year on year until year $4,$ then with a decrease of $4\%$ from the previous year in Year $5.$ The production cost is $40\%$ of the sales revenues with fixed cost of RM$5\mathrm{.}5$ million and interest expenses of RM$1\mathrm{.}2$ million annually. The company$$s tax rate is $24\%.$ The company sold at asset at Year $5$ at a loss of RM$45,000.$

Prepare the Proforma Income Statement for $5$ years and calculate the Operating Cash Flows year on year.

Net Profit After Tax in Year $1$ is RM$\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Profit After Tax in Year $2$ is RM$\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Net Profit After Tax in Year $2$ is RM$\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Net Profit After Tax in Year $3$ is RM$\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Net Profit After Tax in Year $4$ is RM$\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Operating Cash Flow in Year $5$ is RM$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_.$

Answer rating: 100% (QA)

To prepare the Proforma Income Statement for Rosey Inc for 5 years and calculate the Operating Cash ... View the full answer