Omaha,Inc.,is expected to have the following cash revenues and expenses (other than depreciation)in 20xx: $$\begin{array} { l c l r }
\text { Sales } & \$ 82,000 & \text { Depreciation exgense } & \$ 5,000 \
\text { Selling general and } & & \text { Income tax exgense } & 3,000 \
\text { adrninistrative expenses } & & \text { Cost of goods sald } & 45,000 \
\text { (excluding depreciation) } & 10,000 & & \
\end{array}$$
Omaha's estimated 20xx net cash flows are

Question

Omaha,Inc.,is expected to have the following cash revenues and expenses (other than depreciation)in 20xx: $$\begin{array} { l c l r } 
\text { Sales } & \$ 82,000 & \text { Depreciation exgense } & \$ 5,000 \
\text { Selling general and } & & \text { Income tax exgense } & 3,000 \
\text { adrninistrative expenses } & & \text { Cost of goods sald } & 45,000 \
\text { (excluding depreciation) } & 10,000 & & \
\end{array}$$ 
Omaha's estimated 20xx net cash flows are

Quizplus · Accepted Answer

To find Omaha's estimated 20xx net cash flows, we need to subtract the total cash expenses from the total cash revenues. Total cash revenues are $43,000, and total cash expenses are $19,000. Therefore, the estimated 20xx net cash flows are $24,000 (Option C).

Omaha,Inc,Is Expected to Have the Following Cash Revenues and Expenses