(a) You are put in charge of managing your firms working capital. Your firm has

$ 125,000 in extra cash on hand and decides to put it in a savings account

2% interest. How much will you have in your account in 12 years assuming

that banks pay interest annually i.e (compounding) interest payments accrues

annually.

(b) Your grandma wants to know exactly what the impact of depreciation in

financial statements is. Please explain in simple terms why you need to add

the amount of depreciation to the net income in order to get the cash flow

statement