Question: the answer is right but can you please solve step by step, not using excel Revenues generated by a new fad product are forecast as

the answer is right but can you please solve step by step, not using excel

Revenues generated by a new fad product are forecast as follows: Thereafter 0 Expenses are expected to be 50% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $40,000 in plant and equipment that will be depreciated using the straight-line method over 5 years. The firm recently spent $2,000 on a study to estimate the revenues of the new product. The tax rate is 20%. What is the operating cash flow in year 1 ? Answer to nearest whole dollar amount

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