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What is the amount of the operating cash flow

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Reference no: EM133031192

Question - 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?

a. $107,000

b. $136,000

c. $42,000

d. $114,000

e. $172,000

Reference no: EM133031192

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