As Assistant to the CFO of Boulder Inc ?
A) $6,015
B) $6,797
C) $6,436
D) $6,496
E)

question 64

Multiple Choice

As assistant to the CFO of Boulder Inc. ,you must estimate the Year 1 cash flow for a project with the following data.What is the Year 1 cash flow? Do not round the intermediate calculations and round the final answer to the nearest whole number. $$\begin{array} { l r } \text { Sales revenues } & \$ 13,100 \\\text { Depreciation } & \$ 4,000 \\\text { Other operating costs } & \$ 6,000 \\\text { Tax rate } & 35.0 \%\end{array}$$
?

• A) $6,015
• B) $6,797
• C) $6,436
• D) $6,496
• E) $5,414

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Definitions:

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales or revenue.

Profitability

A measurement of an entity's ability to generate income in relation to its revenue, assets, or equity.

Assets

Resources owned by a company that have economic value and can be used to meet its obligations or invest in its operations.

Liabilities

Financial obligations or debts owed by a company to creditors.