Answer:
The cash flow from program operation is $1,600,000.
Explanation:
Prepare the Cash Flow from Operating Activities Section to determine the cash flow from program operation.
<u>Cash Flow from Operating Activities</u>
Revenue $3,000,000
Less Expenses :
Operating Expenses $1,000,000
Interest expense $200,000
Management fees $200,000
Depreciation $3,000,000 ($4,400,000)
Operating Profit / (Loss) ($1,400,000)
Add Back Depreciation $3,000,000
Operating Cash flow $1,600,000
