Budgets are itemized forecasts of a company's income, expenses, and capital needs and are also an important tool for financial planning and control

McConachie’s incremental annual after-tax operating cash flow is closest to:

McConachie Company is considering the purchase of a new 400-ton stamping press. The press costs $360,000, and an additional $40,000 is needed to install it. The press will be depreciated straight-line to zero over a five-year life. The press will generate no additional revenues, but it will reduce cash operating expenses by $140,000 annually. The press will be sold for $120,000 after five years. An inventory investment of $60,000 is required during the life of the investment. McConachie is in the 40 percent tax bracket. A. $116,000. B. $124,000. C. $140,000

One of the assumptions of cost-volume-profit (CVP) analysis is that there are no changes in the ________

A) accounts payable B) cash balance C) inventory levels D) account receivables