Schiller Construction Inc. has estimated the following revenues and expenses related to phase I of the proposed new housing development: Incremental sales $5,000,000 Total cash expenses $3,500,000 Depreciation Taxes Interest expense $500,000 35% $200,000 What is the Operating cash flow? A. $650,000 B. $1,000,000 C. $1,150,000 D. $975,000

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...
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Accounting

Schiller Construction Inc. has estimated the following revenues and
expenses related to phase I of the proposed new housing development:
Incremental sales
$5,000,000
Total cash expenses $3,500,000
Depreciation
Taxes
Interest expense
$500,000
35%
$200,000
What is the Operating cash flow?
A. $650,000
B. $1,000,000
C. $1,150,000
D. $975,000
Transcribed Image Text:Schiller Construction Inc. has estimated the following revenues and expenses related to phase I of the proposed new housing development: Incremental sales $5,000,000 Total cash expenses $3,500,000 Depreciation Taxes Interest expense $500,000 35% $200,000 What is the Operating cash flow? A. $650,000 B. $1,000,000 C. $1,150,000 D. $975,000
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