Houston's is considering a project that will produce incremental annual sales of $234,000 and increase cash expenses by $148,000. If the project is implemented, taxes will increase from $31,000 to $34,000, and depreciation will increase from $41,000 to $46,000. The company is debt-free. What is the amount of the operating cash flow using the top-down approach? a. $88,000. b. $83,000. c. $87,000. d. $89,000. e. $84,000.
Houston's is considering a project that will produce incremental annual sales of $234,000 and increase cash expenses by $148,000. If the project is implemented, taxes will increase from $31,000 to $34,000, and depreciation will increase from $41,000 to $46,000. The company is debt-free. What is the amount of the operating cash flow using the top-down approach? a. $88,000. b. $83,000. c. $87,000. d. $89,000. e. $84,000.
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Transcribed Image Text:Houston's is considering a project that will produce incremental annual sales
of $234,000 and increase cash expenses by $148,000. If the project is
implemented, taxes will increase from $31,000 to $34,000, and depreciation will
increase from $41,000 to $46,000. The company is debt-free. What is the
amount of the operating cash flow using the top-down approach?
a. $88,000.
b. $83,000.
c. $87,000.
d. $89,000.
e. $84,000.
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