Marie's Fashions is considering a.9 project that will require $ 39,000 in net working capital and $ 68,000 in fixed assets. The project is expected to produce annual sales of $ 73, 000 with associated cash costs of $ 42,500. The project has a four- year life. The company uses straight line depreciation to a zero book value over the life of the project. Ignore bonus depreciation . The tax rate is 25 percent. What is the operating cash flow for this ? project

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.