Answer Happy

Determine Cash Flows Natural Foods Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The new garden tool is expected to generate additional annual sales of 5,400 units at $44 each. The new manufacturing equipment will cost $99,400 and is expected to have a 10-year life and a $7,600 residual value. Selling expenses related to the new product are expected to be 5% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: Direct labor $7.50 Direct materials 24.40 Fixed factory overhead-depreciation 1.70 Variable factory overhead 3.80 Total $37.40 Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar Natural Foods Inc. Net Cash Flows Years 2-9 Last Year Initial investment Operating cash flows: Annual revenues Selling expenses Cost to manufacture Previous Next > Net operating cash flows Total for Year 1 Total for Years 2-9 (operating cash flow) Check My Work Year 1 X
of 5,400 units at $44 each. The new manufacturing equipment will cost $99,400 and is expected to have a 10-year ule and a $7,000 residual value. Selling expenses related to the new product are expected to be 5% of sales revenue. The cost to manufacture the product includes the following on a per-unit basis: Direct labor $7.50 Direct materials 24.40 Fixed factory overhead-depreciation 1.70 Variable factory overhead 3.80 Total $37.40 Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use the minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answers to the nearest dollar. Natural Foods Inc. Net Cash Flows Years 2-9 Last Year Initial investment Operating cash flows: Annual revenues Selling expenses EE Cost to manufacture Prais Next Net operating cash flows Total for Year 1 Total for Years 2-9 (operating cash flow) Residual value Total for last year Year 1 X 0000 00