Question: Please explain the solution to this general accounting problem using the correct accounting principles. Aurum Labs is evaluating a proposed new investment with projected sales

Please explain the solution to this general accounting problem using the correct accounting principles.

Aurum Labs is evaluating a proposed new investment with projected sales of $720,000. Variable costs are 49% of sales, and fixed costs are $102,000. Depreciation is $88,000. Prepare a pro forma income _ statement assuming a tax rate of 40%. What is the projected net income? What is the operating cash flow

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