A Firm Generates Sales of $250,000, Depreciation Expense of $50,000

question 38

Multiple Choice

A firm generates sales of $250,000, depreciation expense of $50,000, taxable income of $50,000, and has a 35 percent tax rate.By how much does net cash flow deviate from net income?

• A)$17,500
• B)$50,000
• C)$67,500
• D)$82,500

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Definitions:

Focused Freewriting

A writing strategy where the writer writes non-stop for a set period of time but stays focused on a particular topic or idea.

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution to a problem.

Jotting Down

The act of quickly writing something down to remember or refer to later, often informally.

Clustering

A process in data analysis where a set of objects are grouped together so that objects in the same group are more similar to each other than to those in other groups.