Northern Railway Is Considering a Project Which Will Produce Annual

Multiple Choice

Northern Railway is considering a project which will produce annual sales of $975,000 and increase cash expenses by $848,000.If the project is implemented,taxes will increase from $141,000 to $154,000 and depreciation will increase from $194,000 to $272,000.The company is debt-free.What is the amount of the operating cash flow using the top-down approach?

A) $25,000
B) $114,000
C) $157,000
D) $181,000
E) $209,000