Omaha Inc.is expected to have the following cash revenues and expenses (other than depreciation)in 2014: Omaha's estimated 2014 net cash flows are

Question

Omaha Inc.is expected to have the following cash revenues and expenses (other than depreciation)in 2014:  Omaha's estimated 2014 net cash flows are

Quizplus · Accepted Answer

To calculate Omaha's estimated 2014 net cash flows, we need to subtract the total cash expenses from the total cash revenues. 
Total cash revenues = $75,000 + $5,000 = $80,000 
Total cash expenses = $35,000 + $8,000 + $3,000 = $46,000 
Net cash flows = Total cash revenues - Total cash expenses = $80,000 - $46,000 = $34,000. Therefore, the answer is C.

Omaha IncIs Expected to Have the Following Cash Revenues and Expenses