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What is the annual operating cash flow for go fly a kite

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Question 1: Go Fly A Kite is considering making and selling custom kites in two sizes. The small kites would be priced at $11.10 and the large kites would be $24.10. The variable cost per unit is $5.35 and $11.70, respectively. Jill, the owner, feels that she can sell 2,900 of the small kites and 1,790 of the large kites each year. The fixed costs would be $2,120 a year and the depreciation expense is $1,200. The tax rate is 34 percent. What is the annual operating cash flow?

Reference no: EM132873404

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