CASH FLOWS AND ASSET REPLACEMENT. Marc Stephens is an investment analyst for Ohio’s State Teachers’ Retirement System. He is considering a major investment in one of two trucking companies. The two companies are about the same size and serve customers on similar routes. Both companies have reported about the same net income for the past 3 years. Your inspection of the balance sheets of the two companies provides the following data (in thousands of dollars):

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Trucks Accumulated depreciation Trucks, net COMPANY A COMPANY B $2,400 $2,100 (522) $1,878 (1,908) $ 192 REQUIRED: 1. Does the data suggest that there may be a difference in the timing of future cash flows for truck replacement? 2. Do these differences have any implications for you as an investor?