Answer:
the project's operating cash flow is $117,485
Explanation:
Operating Cash flow is the cash resulting from a Company`s trading activities. This excludes finance charges, income taxes and depreciation.
<u>Calculation of project's operating cash flow</u>
Fleece - Top Sales ($49 x 3,600 tops) $176,400
Jean Sales ($59 x 215 pairs) $12,685
T - Shirt Sales ($20 x 350) $7,000
Total Sales Revenue $196,085
Less Variable Costs
Jeans ($27 x 215 pairs) ($5,805)
T - Shirts ($11 x 350) ($3,850)
Fleece - Top ($23 x 215 pairs) ($4,945)
Contribution $181,485
Less Fixed Costs ($64,000)
Operating Cash flow $117,485
Conclusion :
the project's operating cash flow is $117,485.
