Operating cash flow :Question :21 Ben's Border Cafe' is considering a project which will produce sales of $16,000 and increase cash expenses by $10,000. If the project is implemented, taxes will increase from $23,000 to $24,500 and depreciation will increase from $4,000 to $5,500. What is the amount of the operating cash flow using the top- down approach? a. $4,000 b. $4,500 c. $6,000 d. $7,500

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
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Operating cash flow :Question :21
Ben's Border Cafe' is considering a project which will produce
sales of $16,000 and increase cash expenses by $10,000. If the
project is implemented, taxes will increase from $23,000 to
$24,500 and depreciation will increase from $4,000 to $5,500.
What is the amount of the operating cash flow using the top-
down approach?
a. $4,000
b. $4,500
c. $6,000
d. $7,500
Transcribed Image Text:Operating cash flow :Question :21 Ben's Border Cafe' is considering a project which will produce sales of $16,000 and increase cash expenses by $10,000. If the project is implemented, taxes will increase from $23,000 to $24,500 and depreciation will increase from $4,000 to $5,500. What is the amount of the operating cash flow using the top- down approach? a. $4,000 b. $4,500 c. $6,000 d. $7,500
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