Question

Danielle's is a furniture store that is considering adding appliances to its offerings. Which of the following should be considered incremental cash flows of this project?I. utilizing the credit offered by a supplier to purchase the appliance inventoryII. benefiting from increased furniture sales to appliance customersIII. borrowing money from a bank to fund the appliance projectIV. purchasing parts for inventory to handle any appliance repairs that might be necessaryA. I and II onlyB. III and IV onlyC. I, II, and IV onlyD. II, III, and IV onlyE. I, II, III, and IV

Answer 1

Option C

I, II, and IV

Step-by-step explanation:

An incremental cash flow for Danielle's furniture can only be achieved by adhering to the option of;

- Utilizing the credit offered by a supplier to purchase the appliance inventory.

- Benefiting from increased furniture sales to appliance customers.

- Purchasing parts for inventory to handle any appliance repairs that might be necessary.

But not borrowing money from a bank to fund the appliance project considering the risk of foreclosure if he can't payback eventually.