Assignment:
Show transcribed image text Dave's Devilish Dogs (3D) expects to generate $92,000 in sales in the long term. 3D's operating costs, excluding depreciation, are 75 percent of sales. The company has only one asset, a machine that was just purchased for $150,000. The machine will be depreciated according to the MACRS 3-year class of assets. 3D's marginal tax rate is 35 percent, and it has no debt. Compute the company's
1. Net income and
2. After-tax operating cash for the next four years.