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The Java House Is Considering a Project That Will Produce

Question 21

Multiple Choice

The Java House is considering a project that will produce sales of $59,280 and increase cash expenses by $26,040.If the project is implemented,taxes will increase by $4,600.The additional depreciation expense will be $10,100.An initial cash outlay of $7,300 is required for net working capital.What is the amount of the operating cash flow using the top-down approach?


A) $18,540
B) $33,240
C) $18,200
D) $28,640
E) $32,800

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