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b) - Using only the information given, fill in the blanks (16 pts): Straight Line DDB Year 2 Year 3 Year 1 125.000 Year 1

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b) - Using only the information given, fill in the blanks (16 pts): Straight Line DDB Year 2 Year 3 Year 1 125.000 Year 1 125,000 Year 2 Year 3 Revenue CGS G Profit S 87.500 S 122.500 Fixed Costs Depreciation Total Op. Expenses 15,000 45,000 S 45,000 S 15,000 S 45,000 0,000 Operating Income 12,500 500 is 73.9001 Taxes (21%) 7,875 ,575 S 7.665 Net Income 9.875 At close of business (COB) on the last day of Year 3 (12/31/Year 3), Cash is projected to be $111,775 under the straight line depreciation method, and $112,741 under the Accelerated DDB method. c.) Calculate the expected Book Value per share at the end of Year 3 (1 pt) using: A) Straight Line Depreciation S B) Accelerated Depreciation S d.) As a result of your calculations, which method yields the highest book value (1 pt): A) Straight Line Depreciation B) Accelerated Depreciation Calculate retained earnings each year Set up a simple balance sheet for COB Year 3 using only the information given Hint 2

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