During 2022, Minisoft forecasts its income statement for 2023 is as follows:

In addition, in 2023 Minisoft expects that working capital will increase $20,000, and capital spending will total $100,000. What is the amount of adjusted after tax cash flow that should be used for the 2023 year in calculating the value of the firm?

 

Sales	1,000,000
Variable costs	(300,000)
Operating margin	700,000
Depreciation	(200,000)
Fixed, admin and general exp.	(100,000)
Income before int. exp. & taxes	400,000
Int. expense	(80,000)
Income before taxes	320,000
Income tax expense (20% rate)	(64,000)
Net income	256,000