Relevant Cash Flow Exercise
Joe Collectibles projects revenues of $20 million, operating expenses of $10 million, and taxes of $2 million for the coming year. Projected operating expenses include depreciation of $1.2 million. Joe Collectibles plans to make $0.75 million capital investments during the period, and it anticipates the following changes in its working capital accounts:
|Less: Accounts Payable
Net Working Capital
Calculate projected net cash flow for this coming year.