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 at
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 a $20 a unit, production costs at 39% of sales price, annual fixed costs for production at$130,000, and straight-line depreciation expense of $220,000 per year. The company tax rate is 35%. What is the annual operating cash flow of the new GPS system?
What is the annual operating cash flow of the new GPS system?
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