A distributor of medical textbooks, HealthEd Publishing, is planning for growth. Their current annual sales are $180,000 and are projected to reach $250,000 next year. Operating expenses are 55% of sales each year. If the tax rate is 30% and annual straight-line depreciation is $20,000, calculate the cash flow one year from today.
A distributor of medical textbooks, HealthEd Publishing, is planning for growth. Their current annual sales are $180,000 and are projected to reach $250,000 next year. Operating expenses are 55% of sales each year. If the tax rate is 30% and annual straight-line depreciation is $20,000, calculate the cash flow one year from today.
Chapter11: Capital Budgeting Decisions
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
Transcribed Image Text:A distributor of medical textbooks, HealthEd Publishing, is planning for growth. Their
current annual sales are $180,000 and are projected to reach $250,000 next year.
Operating expenses are 55% of sales each year. If the tax rate is 30% and annual
straight-line depreciation is $20,000, calculate the cash flow one year from today.
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