help with below question Three different companies each purchased trucks on January 1, Year 1, for $72,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 67,000 miles in Year 1, 42,000 miles in Year 2, 40,000 miles in Year 3, and 62,000 miles in Year 4. Each of the three companies earned $61,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Required a-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1? b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4? c-1. Calculate the book value on the December 31, Year 3, balance sheet. c-2. Which company will report the highest book value on the December 31, Year 3, balance sheet? d-1. Calculate the retained earnings on the December 31, Year 4, balance sheet. d-2. Which company will report the highest amount of retained earnings on the December 31, Year 4, balance sheet? e. Which company will report the lowest amount of cash flow from operating activities on the Year 3 statement of cash flows?
help with below question Three different companies each purchased trucks on January 1, Year 1, for $72,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 67,000 miles in Year 1, 42,000 miles in Year 2, 40,000 miles in Year 3, and 62,000 miles in Year 4. Each of the three companies earned $61,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation. Answer each of the following questions. Ignore the effects of income taxes. Required a-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1? b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4? c-1. Calculate the book value on the December 31, Year 3, balance sheet. c-2. Which company will report the highest book value on the December 31, Year 3, balance sheet? d-1. Calculate the retained earnings on the December 31, Year 4, balance sheet. d-2. Which company will report the highest amount of retained earnings on the December 31, Year 4, balance sheet? e. Which company will report the lowest amount of cash flow from operating activities on the Year 3 statement of cash flows?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please Complete All Requirement and Not allow Image format
Transcribed Image Text:b-1. Calculate the net income for Year 4. (Round your "Per Unit Cost" to 3 decimal places.)
b-2. Which company will report the lowest amount of net income for Year 4?
b-1
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Required A Required B Required C
b-2
Show Transcribed Text
C-1
Required A
C-2
Company A
Company B
Company C
Lowest net income
Complete this question by entering your answers in the tabs below.
d-1
Required B Required C
Show Transcribed Text
Company A
Company B
Company C
Highest book value
d-2
Required A Required B
Net Income
c-1. Calculate the book value on the December 31, Year 3, balance sheet. (Round "Per Unit Cost" to 3 decimal places.)
c-2. Which company will report the highest book value on the December 31, Year 3, balance sheet?
Required D Required E
Company A
Company B
Company C
Highest retained earnings
< Required A
Show Transcribed Text
Required D
Book Value
Required C
< Required B
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Required D
3
Retained Earnings
Ć
Required E
d-1. Calculate the retained earnings on the December 31, Year 4, balance sheet.
d-2. Which company will report the highest amount of retained earnings on the December 31, Year 4, balance sheet?
< Required C
Required C >
< Required D
Required D >
Required E
Required E >
Complete this question by entering your answers in the tabs below.
Required A Required B Required C Required D Required E
Which company will report the lowest amount of cash flow from operating activities on the Year 3 statement of cash flows?
Lowest cash flow
Required E >
Transcribed Image Text:help with below question Three different companies each purchased trucks on January 1, Year 1, for
$72,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be
$6,000. All three trucks were driven 67,000 miles in Year 1, 42,000 miles in Year 2, 40,000 miles in Year 3,
and 62,000 miles in Year 4. Each of the three companies earned $61,000 of cash revenue during each of
the four years. Company A uses straight-line depreciation, company B uses double-declining-balance
depreciation, and company C uses units-of-production depreciation. Answer each of the following
questions. Ignore the effects of income taxes. Required a-1. Calculate the net income for Year 1. a-2. Which
company will report the highest amount of net income for Year 1? b-1. Calculate the net income for Year 4.
b-2. Which company will report the lowest amount of net income for Year 4? c-1. Calculate the book value
on the December 31, Year 3, balance sheet. c-2. Which company will report the highest book value on the
December 31, Year 3, balance sheet? d-1. Calculate the retained earnings on the December 31, Year 4,
balance sheet. d-2. Which company will report the highest amount of retained earnings on the December
31, Year 4, balance sheet? e. Which company will report the lowest amount of cash flow from operating
activities on the Year 3 statement of cash flows?
Required A Required B
a-1. Calculate the net income for Year 1. (Round "Per Unit Cost" to 3 decimal places.)
a-2. Which company will report the highest amount of net income for Year 1?
a-1
Complete this question by entering your answers in the tabs below.
a-2
Show Transcribed Text
Company A
Company B
Company C
Highest net income
b-1
Required A
b-2
C-1
C-2
Show Transcribed Text
Required C
Complete this question by entering your answers in the tabs below.
Required B Required C
Company A
Company B
Company C
Lowest net income
Net Income
b-1. Calculate the net income for Year 4. (Round your "Per Unit Cost" to 3 decimal places.)
b-2. Which company will report the lowest amount of net income for Year 4?
Required D Required E
< Required A
Company A
Company B
Company C
Highest book value
J
Required D
Net Income
< Required A
Book Value
Required E
Required B >
Complete this question by entering your answers in the tabs below.
Ċ
Required A Required B Required C Required D Required E
c-1. Calculate the book value on the December 31, Year 3, balance sheet. (Round "Per Unit Cost" to 3 decimal places.)
c-2. Which company will report the highest book value on the December 31, Year 3, balance sheet?
Required C >
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