Question

195.Ronnie's Coffee House is considering a project which will produce sales of $6,000 and increase cash

expenses by $2,501. If the project is implemented, taxes will increase by $1,301. The additional

depreciation expense will be $1,001. An initial cash outlay of $2,000 is required for net working capital.

What is the amount of the operating cash flow using the top-down approach?

A. $200

B. $1,500

C.

$2,200

D. $3,500

E. $4,200