Camille's Café Is Considering a Project Which Will Produce Sales

Camille's Café is considering a project which will produce sales of $17,500 and increase cash expenses by $12,000. 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) $2,500
B) $4,000
C) $5,500
D) $17,500
E) $29,500

Correct Answer:

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