Homework Answers
Depreciation expense under 10 year life = $127,500
Depreciation expense under 15 year life = $82,500
Difference in depreciation expense = $127,500 - $82,500
= $45,000
Net income under 15 year life = Net income under 10 year life + Difference in depreciation expense
= $58,750 + $45,000
= $103,750
Net cash provided by operating activities under 10 year life = Net income + Depreciation expense under 10 year life
= $58,750 + $127,500
= $186,250
Net cash provided by operating activities under 15 year life = Net income + Depreciation expense under 15 year life
= $103,750 + $82,500
= $186,250
| 10 year life | 15 year life | |
| Net income | $58,750 | $103,750 |
| Net cash provided by operating activities | $186,250 | $186,250 |
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sheet shows a decrease in accounts receivable of $14,400 for the
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