Chia Chia Company has a projected sales volume of RM9,650 for the second year of a proposed
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Question:
- Chia Chia Company has a projected sales volume of RM9,650 for the second year of a proposed expansion project. Costs normally run 60 percent of sales, or about RM990 in this case. The depreciation expense will be RM100, and the tax rate is 35 percent.
Required:
- Calculate the net income of Chia Chia Company.
- Calculate the operating cash flow of Chia Chia Company.
- Calculate the operating cash flow by using (i) Top-down approach and (ii) Tax shield approach.
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
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