Use the Table for the Question(s)below

question 34

Multiple Choice

Use the table for the question(s) below.
AOS Industries Statement of Cash Flows for 2008
-Consider the above statement of cash flows.In 2008,AOS Industries had contemplated buying a new warehouse for $2 million,the cost of which would be depreciated over 10 years.If AOS Industries has a tax rate of 25%,what would be the impact for the amount of cash held by AOS at the end of the 2008?

• A)It would have $2,000,000 less cash at the end of 2008.
• B)It would have $1,950,000 less cash at the end of 2008.
• C)it would have $150,000 less cash at the end of 2008.
• D)it would have an additional $50,000 in cash at the end of 2008.

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Definitions:

Quality Leadership

A management approach that emphasizes excellence in products and services through leadership commitment and continuous improvement practices.

Competing on Differentiation

A strategy where businesses aim to distinguish their products or services from competitors through unique features, quality, or service.

Mass Production

The manufacture of large quantities of standardized products, often using assembly lines or automated technology.

Experience Differentiation

Engaging a customer with a product through imaginative use of the five senses, so the customer “experiences” the product.