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Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a...

Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS​ system: annual sales of 40,000 units at ​$26 a​ unit, production costs at 35​% of sales​ price, annual fixed costs for production at ​$130,000​, and​ straight-line depreciation expense of ​$215,000 per year. The company tax rate is 40​%. What is the annual operating cash flow of the new GPS​ system?

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Solution :

The annual operating cash flow of the new GPS​ system is = $ 413,600

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

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