What is the amount of operating cash flow for john jewellery

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Problem 1: John's Jewellery is considering carrying a new product line which is expected to produce annual sales of $475,000 and increase cash expenses by $325,000. If the product line is added, taxes will increase by $36,000. The additional depreciation expense will be $37,000. An initial cash outlay of $65,000 is required for net working capital. What is the amount of the operating cash flow using the top-down approach?

Option 1: $107,000

Option 2: $136,000

Option 3: $42,000

Option 4: $114,000

Option 5: $172,000

Reference no: EM132946090

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