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

question 98

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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Definitions:

Ethmoid Bone

A spongy bone located between the eyes that forms part of the nasal cavity and the orbits of the eyes.

Crista Galli

A vertical projection of the ethmoid bone in the skull, serving as an attachment point for the dura mater, the outermost membrane covering the brain.

Cribiform Plate

A part of the ethmoid bone in the skull with many small holes through which olfactory nerve fibers pass from the nasal cavity to the brain.

Nasal Conchae

Curved bony projections in the nasal cavity that help to filter, warm, and moisten the air we breathe.