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1. Cast yourself in the role of Andrea Accrual and complete the following income statements. 2. Cast yourself in the role of Carlos Cash and
1. Cast yourself in the role of Andrea Accrual and complete the following income statements. 2. Cast yourself in the role of Carlos Cash and complete the following two cash flow statements. 3. Co-write an executive summary from Andrea and Carlos either in support of or against acquiring the new delivery equipment. (The memo should include a statement as to why they believe using straight-line depreciation is better than using accelerated depreciation from a profitability standpoint.) (Record the amounts in Thousands) Income Statements-Retain Old Delivery Equipment Total $1,500 2025 $500 2024 $500 2023 $500 Income before depreciation, g/1, interest, and fuel Depreciation expense Net fuel expense Pretax income Income StatementsBuy New Delivery Equipment Total $1,500 2025 $500 2024 $500 2023 $500 Income before depreciation, g/l, interest, and fuel Depreciation expense (Gain) loss on the sale of old trucks Interest expense Pretax income Cash Flows-Retain Old Delivery Equipment Total 2025 2024 2023 Net additional operating costs Cash outflow Cash Flows-Buy New Delivery Equipment Total 2025 2024 2023 Sell old equipment Borrow / (repay) cash (Buy) new equipment Sell new equipment (Pay) interest Cash outflow
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