Question: 22. Prepare a Proforma Cash Flow Statement based on the following information: Big Sis Inc. expects to sell 100,000 pacifiers per year at a price
22. Prepare a Proforma Cash Flow Statement based on the following information: Big Sis Inc. expects to sell 100,000 pacifiers per year at a price of $7.00 each. - Cost of Goods Sold will be $2.00 per pacifier 3-year project life Big Sis has a 21% marginal tax rate - Fixed costs will run $11,000 per year - Investment of $60,000 for manufacturing equipment, depreciated over the 3year project life - The equipment will have a $10,000 pre-tax salvage value at the end of year 3 - Initial investment of $12,000 in Net working capital will be completely recovered at the end of the project
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