2345 Question #12 See the explanation below to work the problem. XYZ Company, a 'for-profit' business, had revenues of $16 million in 2022. Expenses other than depreciation totaled 75 percent of revenues. XYZ Company, must pay taxes at a rate of 40 percent of pretax (operating) income. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash. Depreciation originally was $2 million; however, now the company has decided to be more conservative in its depreciation of its capital assets. XYZ now has $750,000 in depreciation expense instead of $2 million. Based on this change in depreciation expense, what would XYZ's cash flow be? Choice: $750,000 5 124) Choice: $2,700,000 Choice: $2,000,000 Choice: $1,050,000