The Spinach Corporation just purchased an expensive piece of equipment. Assume that the firm planned to depreciate the equipment over 5 years, but then the taxation office passed a provision that requires the company to depreciate the equipment over 7 years. Which of the following will occur as a result of this new law? Select one: a. cash position will improve b. net income will be lower c. operating income, or EBIT, will increase d. taxable income will be lower

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.