Operating cash flow. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 40,000 units at $25 a unit, production costs at 36% of sales price, annual fixed costs for production at $130,000, and straight-line depreciation expense of $ 190,000 per year. The company tax rate is 30%. What is the annual operating cash flow of the new GPS system?
What is the annual operating cash flow of the new GPS system?