Requlred Informatlon

$[$The following information applies to the questions displayed below.$]$

Cardinal Company is considering a five$-$year project requiring a $$2,765,000$ investment in equipment with a useful life of

five years and no salvage value. The company's discount rate is $14\%.$ The project would provide net operating income in

each of five years as follows:

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ to determine the appropriate discount factor$($s$)$ using table.

Requlred:

Which item$($s$)$ in the income statement shown above will not affect cash flows?

Note: You may select more than one answer. SIngle cllek the box with the questlon mark to produce a check mark for a correct

answer and double ellek the box with the questlon mark to empty the box for a wrong answer. Any boxes left with a questlon mark

will be outomatically groded as Incorrect.

$?$ Sales

$?$ Varlable expenses

$2$ Advertising, salarles, and other fixed out$-$of$-$pocket costs expenses

$($ Depreclation expense