Question: Operating cash flow . Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 40,000 units

Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 40,000 units at $26 a unit, production costs at 35% of sales price, annual fixed costs for production at $130,000, and straight-line depreciation expense of $215,000 per year. The company tax rate is 40%. What is the annual operating cash flow of the new GPS system?

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