Question: Operating cash flow. Huffman Systems has forecasted sales for its new home alarm systems to be 65,000 units per year at S400 per unit The

Operating cash flow. Huffman Systems has forecasted sales for its new home alarm systems to be 65,000 units per year at S400 per unit The cost to produce each unit is expected to be about 38% of the sales price. The new product will have an additional S490.000 of fixed costs each year, and the manufacturing equipment will have an initial cost of S3 100 000 and wil be depreciated over eight years (straight line) The company tax rate is 3a%, what is the annual operating What is the annual operating cash low for the alarm systems? (Round to the nearest dollar )
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
