What would be the annual operating cash flow

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Problem 1: Table Manufacturers Ltd is contemplating making and selling small and large tables. The small tables would be priced at $10 and the large tables would be $30. The variable cost per unit is $6 and $15, respectively. The sales department expects to sell 3,600 units of the small tables and 2,000 units of the large tables each year. Given the fixed costs of $2,120 a year, the annual depreciation expense of $1,350, and the annual tax rate of 34 percent, what would be the annual operating cash flow?

Reference no: EM132943576

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