A proposed new investment has projected sales of $675,000. Variable costs are 46% of sales, and fixed costs are $95,000. Depreciation is $82,000. Prepare a pro forma income statement assuming a tax rate of 46%. What is the projected net income? What is the operating cash flow? Answer this financial accounting Problem.
A proposed new investment has projected sales of $675,000. Variable costs are 46% of sales, and fixed costs are $95,000. Depreciation is $82,000. Prepare a pro forma income statement assuming a tax rate of 46%. What is the projected net income? What is the operating cash flow? Answer this financial accounting Problem.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 1CMA
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Subject: Financial Accounting

Transcribed Image Text:A proposed new investment has projected sales of $675,000.
Variable costs are 46% of sales, and fixed costs are $95,000.
Depreciation is $82,000. Prepare a pro forma income
statement assuming a tax rate of 46%. What is the projected
net income? What is the operating cash flow? Answer this
financial accounting Problem.
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