Reference no: EM132490350

Omaha, Inc., is expected to have the following cash revenues and expenses (other than depreciation) in 20x7:

Sales                                                                                $88,000

Selling, general, and admin, expenses(excluding depreciation)       10,000

Depreciation expense                                                            $5,000

income tax expense                                                                3,000

cost of goods sold                                                                 45,000

Question 1: What Omaha's estimated 20x7 net cash flows ARE :

Option A. 30,000

Option B. 27,000

Option C. 20,000

Option D. 25,000