Camille's Café Is Considering a Project Which Will Produce Sales

question 79

Multiple Choice

Camille's Café is considering a project which will produce sales of $17,500 and increase cash expenses by $12,000. 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) $2,500
• B) $4,000
• C) $5,500
• D) $17,500
• E) $29,500

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Definitions:

Independent Means

Describes a statistical comparison between the means of two or more groups that are independent or not related to each other.

Independent Contractors

Individuals hired to perform specific tasks or services for a company under a contract agreement, but who are not considered employees of the company.

Legal Obligations

Requirements imposed by law that entities or individuals must follow, including regulations, contracts, or statutes.

Permanent Employee

An employee hired for an indefinite duration, often with full-time hours and access to benefits.