Scott Corporation has a new line of jewelry that will generate sales of $380,000 per year.  The variable cost rate for the jewelry amounts to 35% while fixed costs are $100,000 per year.  The Capital Investment for the factory was $900,000 with a depreciable life (straight-line) of 15 years.  If the Tax Rate is 22%, what is the Operating Cash Flow?   Multiple Choice   $167,860   $81,060   None of the above   $127,860   $142,300

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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.