Uptown Motors Is Analyzing a Project with Sales of $420,000,depreciation

question 64

Multiple Choice

Uptown Motors is analyzing a project with sales of $420,000,depreciation of $30,000,and a net working capital requirement of $56,000.The firm has a tax rate of 35 percent and a profit margin of 5 percent.The firm has no interest expense.What is the amount of the operating cash flow?

• A)$49,384
• B)$50,616
• C)$51,000
• D)$58,340
• E)$107,000

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Definitions:

External Audits

Independent examinations of financial records and activities of an entity to ensure accuracy, compliance, and fairness in reporting.

Internal Audits

Are objective evaluations conducted within an organization to assess the effectiveness of its internal controls, operational procedures, and compliance with relevant laws and regulations.

Crisis Management Team

A group of individuals designated to plan for, respond to, and recover from emergency situations, ensuring the organization's resilience.

Quick Response

A strategy that emphasizes being responsive to customer demand to increase service quality and efficiency.