3. Elle has income and deductions as a C.P.A. for 2019 that are summarized as follows:

Gross income from sole proprietorship $229,500

Cash operating expenses for sole proprietorship 42,250

Elle pays for her own medical insurance coverage (for herself and her immediate family) at $950 per month and places $800 per month in a personal retirement account.

You may assume that Elle pays a flat income tax of 15%.

1. Calculate Elle's net after-tax cash flow from this practice.

2. If Elle's has an arrangement with another C.P.A firm such that she is considered an employee under California's AB5, briefly (no more than 200 words) describe the cash flow ramifications.