Problemhuffman systems has sales revenue of 2665000 the, Ask an Expert

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Problem:

Huffman Systems has sales revenue of $2,665,000. The cost of goods sold is $1,012,700. The new product will have an additional $490,000 fixed cost each year. and the manufacturing equipment will have an initial cost of $3,100,000 and will depreciate over 8 years (straight line). The company tax rate is 38%.

Required:

Question: What is the annual operating cash flow for the alarm systems if the projected sales and price per unit are constant over the next 8 years?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171235

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