Hint: Set up a chart showing the different amounts of depreciation each year. Think about what the company will be doing each year if it is growing and profitable.
Hint: Although this is simplistic and brief information, be sure to use the proper format for the statements. It might be helpful to actually prepare a cash flow statement and show it next to the income statement for reference
Hint: For Exercises 8-9 and 8-10, you may want to review the cash flow statements in Module 7 (Chapter 12) and the meaning of each type of activity.
Hint: Read carefully the way a cost is determined to be either an asset or an expense. Also be sure to notice the dates since that could impact your answers.