Question

Assume a project has a sales quantity of 7,400 units, ±6 percent and a sales price of $59 a unit, ±3 percent. The expected variable cost per unit is $13, ±3 percent, and the expected fixed costs are $214,000, ±2 percent. The depreciation expense is $63,000 and the tax rate is 23 percent. What is the operating cash flow under the best-case scenario? (VERY URGENT !!!)

Answer 1

Under best case scenario, all revenues will be on higher side while costs will be on lower side
Calculation of operating cash flow
Sales Quantity	7,844.00
Sales Price	60.77
Sales Revenue	476,679.88
Variable costs	98,912.84
Fixed costs	209,720.00
Depreciation Expense	63,000.00
Income before tax	105,047.04
Less: Tax	24,160.82
Net Income	80,886.22
Add: Depreciation (Since non cash)	63,000.00
Operating Cash flow	143,886.22

hence, the answer is $143,886.22