Tokei Co is a leading clockwork manufacturer. Next year, the company is expected to sell
a total of pieces of its clockwork products at an average price of $ The cost
to produce one clockwork is $ and the retailers will charge percent of the selling
price as commission fee. Tokei Cos fixed cost is estimated to be $ next year.
This estimation does not include the companys depreciation expense of $ Tokei
Co also plans to stock up more materials in its inventory, so the company will have to buy
wood, which will be worth $ Tokei Cos marginal tax rate is percent. The
company also has an obligation to pay $ for the interest on its debt.
a What will be Tokei Cos revenue next year?
b What will be Tokei Cos net operating income next year?
c What will be Tokei Cos operating cash flow next year?
