A Firm Generates Sales of $250,000,depreciation Expense of $50,000,taxable Income

question 45

Multiple Choice

A firm generates sales of $250,000,depreciation expense of $50,000,taxable income of $50,000,and has a 35% 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:

Slippery Slope Fallacy

A logical fallacy that occurs when an argument falsely assumes that one action will lead to a series of other actions resulting in a negative outcome, without providing evidence for such a causal chain.

Fallacy Of Composition

The erroneous reasoning that what is true of the parts must also be true of the whole.

Fallacy Of Division

A logical fallacy that occurs when one assumes that something true of a whole must also be true of its parts.

Hasty Generalization

A logical fallacy where a conclusion is drawn from insufficient evidence or sample size.