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Problem 1: A not-for-profit hematology lab hosts 10,000 visitors in a year. Revenues are $200 per visitor. Fixed operating expenses are $900,000. Variable operating expenses are 30 percent of revenues. Depreciation is $100,000. What is cash flow from operations?
1) $500,000
2) $800,000
3) $300,000
4) $200,000
5) $1,200,000
6) $100,000
7) $400,000
8) $1,000,000
9) $0
10) $600,000
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