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Vinvika [58]
3 years ago
15

An apartment complex generates $335,000 in effective rental income and $2,500 in other income. The same complex has $144,000 in

operating expenses and $116,000 in debt service payments. What is the pre-tax cash flow of the complex?
A) $75,000
B) $77,500
C) $193,500
D) $337,500
Mathematics
1 answer:
Slav-nsk [51]3 years ago
4 0

Answer:

B) $ 77,500

Step-by-step explanation:

The company's pre-tax cash flow = total income - operating expenses - cost of servicing debt = 335 000 + 2500 - 144 000 - 116 000 = $ 77,500

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