Question

A new firm, POINT BLANK, Co expects to generate Sales of $131,300. POINT BLANK has variable costs of $79,900, and fixed costs of $20,400. The per-year depreciation is $4,700 and the tax rate is 34 percent. Given this info: What is the annual operating cash flow?

Answer 1

Variable costs are 55% of sales, depreciation on the equipment to produce the new board will be $2,150,000 per year, and fixed costs are $3,200,000 per year.

Step-by-step explanation:

Variable costs are 55% of sales, depreciation on the equipment to produce the new board will be $2,150,000 per year, and fixed costs are $3,200,000 per year.