Determine Cash Flows Marigold Inc. is planning to invest in new manut 9,200 units at $54 each. The new manufacturin expenses related to the new product are expect < Direct labor Direct materials Fixed factory overhead-depreciation Variable factory overhead Total $9.20 30.00 Initial investment Operating cash flows: Annual revenues Selling expenses Cost to manufacture 2.10 4.60 $45.90 Determine the net cash flows for the first year round your intermediate calculations but, Marigold Inc. Net Cash Flows Year 1

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter12: Capital Investment Analysis
Section: Chapter Questions
Problem 4E: Determine cash flows Natural Foods Inc. is planning to invest in new manufacturing equipment to make...
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TTACO Tactory overead depreciation
Variable factory overhead
Total
Initial investment
Operating cash flows:
Annual revenues
Selling expenses
Cost to manufacture
Total for Year 1
Total for Years 2-9
Residual value
Net operating cash flows $
Total for last year
rel=&takeAssignmentSession Locator=&inprogress=false
Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use a minus sign to indicate cash outflows. Do no
round your intermediate calculations but, if required, round your final answer to the nearest dollar.
Check My Work
2.10
4.60
$45.90
Marigold Inc.
Net Cash Flows
Year 1
Years 2-9 Last Year
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Transcribed Image Text:TTACO Tactory overead depreciation Variable factory overhead Total Initial investment Operating cash flows: Annual revenues Selling expenses Cost to manufacture Total for Year 1 Total for Years 2-9 Residual value Net operating cash flows $ Total for last year rel=&takeAssignmentSession Locator=&inprogress=false Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use a minus sign to indicate cash outflows. Do no round your intermediate calculations but, if required, round your final answer to the nearest dollar. Check My Work 2.10 4.60 $45.90 Marigold Inc. Net Cash Flows Year 1 Years 2-9 Last Year Email Instru F + Previous Coming December 9th-16h Love and Monsters-Watch the tra 00 Dec 8 Next > 2:29▼i
eBook
Initial investment
Operating cash flows:
Annual revenues
Selling expenses
Cost to manufacture
Show Me How
Determine Cash Flows
Marigold Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden tool is expected to generate additional annual sales of
9,200 units at $54 each. The new manufacturing equipment will cost $209,200 and is expected to have a 10-year life and $16,000 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
Direct materials
Fixed factory overhead-depreciation
Variable factory overhead
Total
Check My Work
$9.20
30.00
2.10
$
.60
$45.90
Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use a minus sign to indicate cash outflows. Do not
round your intermediate calculations but, if required, round your final answer to the nearest dollar.
Marigold Inc.
Net Cash Flows
Year 1
0
Years 2-9
Last Year
Print Item
88
•
R
< ✰ ✰ O
Coming December 9th - 16h
Love and Monsters- Watch the tra
O Dec 8
2:29 B
8
Transcribed Image Text:eBook Initial investment Operating cash flows: Annual revenues Selling expenses Cost to manufacture Show Me How Determine Cash Flows Marigold Inc. is planning to invest in new manufacturing equipment to make a new garden tool. The garden tool is expected to generate additional annual sales of 9,200 units at $54 each. The new manufacturing equipment will cost $209,200 and is expected to have a 10-year life and $16,000 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 Direct materials Fixed factory overhead-depreciation Variable factory overhead Total Check My Work $9.20 30.00 2.10 $ .60 $45.90 Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project. Use a minus sign to indicate cash outflows. Do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. Marigold Inc. Net Cash Flows Year 1 0 Years 2-9 Last Year Print Item 88 • R < ✰ ✰ O Coming December 9th - 16h Love and Monsters- Watch the tra O Dec 8 2:29 B 8
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