Jackson Enterprises is preparing a pro forma statement for next year. It estimates sales at 12,840 units with a selling price of $43.01. Variable costs are estimated at $21 a unit. $868,000 of fixed
Assets is being depreciated straight-line to zero over seven years. Annual fixed costs are $104,660
And annual interest payments are $11,051. The tax rate is 35%. The net income is _____ and the
Operating cash flow is ______.
A) $27,800; $132,460
B) $27,800; $162,850
C) $27,800; $209,320
D) $34,983; $132,460
E) $34,983; $209,320
Correct Answer:
Verified
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