Consider the following financial data for $).$ White Industries

Online Activity: Income and Cash Flow Analysis

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Excel Online Structured Activity: Income and Cash Flow Analysis perform the required analysis to answer the questions below.

Open spreadsheet

a$.$ Set up an income statement. What is Berndt's expected net cash flow? Enter your answer in dollars. For example, an answer of $$1\mathrm{.}2$ million should be entered as $1,200,000.$ Round your answer to the nearest dollar. $

b$.$ Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What is Berndt's expected net cash flow? Round your answer to nearest dollar. $

c$.$ Now suppose that Congress changed the tax laws such that, instead of doubling Berndt's depreciation, it was reduced by $50\%.$ What is Berndt's expected net cash flow? Round your answer to the nearestar. $

d$.$ If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved? $$

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