Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. determine cash flows natural foods inc. is plannin

Determine Cash Flows Natural Foods Inc. is planning to invest in new manufacturing equipment to...

90.2K

Verified Solution

Question

Accounting

image

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 5,100 units at $34 each. The new manufacturing equipment will cost $71,800 and is expected to have a 10-year life and a $5,500 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 $5.80 Direct materials Fixed factory overhead-depreciation 18.90 1.30 2.90 Variable factory overhead Total $28.90 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 Year 1 Years 2-9 Last Year Initial investment Operating cash flows: Annual revenues Selling expenses Cost to manufacture Net operating cash flows Total for Year 1 Total for Years 29 (operating cash flow) Residual value Total for last year Check My Work 2 more Check My Work uses remaining.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Discuss a circumstance where you have been exposed to a will and any unusual provisions that...

Advance Math
1.2K views

A population of squirrels living in a forest with a carrying capacity of 2600.(assume logistics...

Statistics
1.2K views

In a study of the accuracy of fast food​ drive-through orders, Restaurant A had 224 accurate...

General Management
1.2K views

Examine the topic of mandatory paid parental leave in the USA. What potential economic and health...

Calculus
1.2K views

Let f be the function whose graph is depicted below.(a) Sketch the slope field of...

Algebra
1.2K views

Which equation is the inverse of 5y 4 x 3 6 11 10 X O...

Accounting
1.2K views

12/31/2015 9300 Dellau are left for food in the indetery 12/21/zas $23,000 Dollare in pige...

Accounting
1.2K views

Please show all work. The deferred tax asset to be recognized. Thank you! Problem:...

Accounting
1.2K views

Which of the following is not a "product cost" under absorption costing? A. Direct materials...

Accounting
1.2K views

off + CH 3 Homework Assignment 2 (balance TB and accruals and deferrals) Question 14...

Accounting
1.2K views

Consider the following time series of returns for ABC stock and the S&P500 Index: Year=...

Finance
1.2K views

Company XYZ produces drones and each of them sells at S100. When the variable cost...