You work for Athens Inc. and you must estimate the Year 1 operating cash flow for a project with the following data. What is the Year 1 operating cash flow? Sales revenues: $15,000 Depreciation: $4,000 Other operating costs: $6,000 Tax rate: 35% a) $7,250 b) $7,431 c) $7,617 d) $7,807 e) $8,003

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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You work for Athens Inc. and you must estimate the
Year 1 operating cash flow for a project with the
following data. What is the Year 1 operating cash
flow?
Sales revenues: $15,000
Depreciation: $4,000
Other operating costs: $6,000
Tax rate: 35%
a) $7,250
b) $7,431
c) $7,617
d) $7,807
e) $8,003
Transcribed Image Text:You work for Athens Inc. and you must estimate the Year 1 operating cash flow for a project with the following data. What is the Year 1 operating cash flow? Sales revenues: $15,000 Depreciation: $4,000 Other operating costs: $6,000 Tax rate: 35% a) $7,250 b) $7,431 c) $7,617 d) $7,807 e) $8,003
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