Bi-Lo Traders Is Considering a Project That Will Produce Sales

Bi-Lo Traders is considering a project that will produce sales of $28,000 and increase cash expenses by $17,500.If the project is implemented,taxes will increase by $3,000.The additional depreciation expense will be $1,600.An initial cash outlay of $1,400 is required for net working capital.What is the amount of the operating cash flow using the top-down approach?

A) $4,500
B) $5,900
C) $6,100
D) $7,500
E) $8,900