In 2014, JRE2 Would Report (Rounded to the Nearest Thousand)

question 168

Multiple Choice

In 2014, JRE2 would report (rounded to the nearest thousand) gross profit (loss) of:

• A)$(100,000).
• B)$50,000.
• C)$123,000.
• D)$2,000.

---

Definitions:

Operating Cash Flows

The cash generated from a company’s normal business operations, indicating its capability to generate sufficient revenue to maintain and grow operations.

Pre-tax Net Income

The amount of income earned by a company before taxes are deducted, representing its profitability.

Incremental Cash Flows

Additional cash flows from a new project or investment, considered when evaluating the financial viability of that project.

Stand-alone Principle

An approach to evaluating investment decisions without considering any potential impacts from external projects or operations.