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Ben's Border Café Is Considering a Project Which Will Produce

Question 43

Multiple Choice

Ben's Border Café 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
E) $8,500

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