Case A Case B Case C Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,000 $100,000 $72,000 Depreciation expense . . . . . . . . . . . . . . . . . . . . . 30,000 8,000 24,000 Accounts receivable increase (decrease) . . . . . . . 40,000 20,000 (4,000)

Inventory increase (decrease) . . . . . . . . . . . . . . . (20,000) (10,000) 10,000 Accounts payable increase (decrease) . . . . . . . . . 24,000 (22,000) 14,000 Accrued liabilities increase (decrease) . . . . . . . . . (44,000) 12,000 (8,000)

AppendixLO1