Compute the projected after tax operating cash flow

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Reference no: EM131338279

Steber Packaging, Inc., expects sales next year of $50 million. Of this total, 40 percent is expected to be for cash and the balance will be on credit, payable in 30 days. Operating expenses are expected to total $25 million.

Accelerated depreciation is expected to total $10 million, although the company will only report $6 million of depreciation on its public financial reports. The marginal tax rate for Steber is 34 percent. Current assets now total $25 million and current liabilities total $15 million.

Current assets are expected to increase to $30 million over the coming year. Current liabilities are expected to increase to $17 million. Compute the projected after-tax operating cash flow for Steber during the coming year.

Reference no: EM131338279

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