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Problem 11 (5 points). A mail-order computer company sells personal computers and peripherals. The company...

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Problem 11 (5 points). A mail-order computer company sells personal computers and peripherals. The company leases showroom space and a warehouse for $30,000 a year and installed $360,000 worth of inventory-checking and packing equipment. The store was completed and operations began in mid- January. The company had a gross income of $1,250,000 for the calendar year. Supplies and all operating expenses, other than the lease expense, were itemized as follows: 00d and oaions began in mid Merchandise sold in the year Employee salaries and benefits Other supplies and expenses TOTAL 600,000 150,000 $90,000 840,000 Assuming that capital expenditures can be recovered using 5 year Straight Line Depreciation rates, compute the company's operating cash flows for the first two years. How much will the company pay in federal income tax for each year? Assume that lease payments take place at the beginning of each year and the company is in the 35 % tax bracket

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