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d - 1 . Calculate the retained earnings on the December 3 1 , Year 4 , balance sheet. Three different companies each purchased trucks
d Calculate the retained earnings on the December Year balance sheet. Three different companies each purchased trucks on January Year for $ Each truck was expected to last four years or
miles. Salvage value was estimated to be $ All three trucks were driven miles in Year miles in Year
miles in Year and miles in Year Each of the three companies earned $ of cash revenue during each of the
four years. Company A uses straightline depreciation, company B uses doubledecliningbalance depreciation, and company C uses
unitsofproduction depreciation.
Answer each of the following questions. Ignore the effects of income taxes.
Required
a Calculate the net income for Year
a Which company will report the highest amount of net income for Year
b Calculate the net income for Year
b Which company will report the lowest amount of net income for Year
c Calculate the book value on the December Year balance sheet.
c Which company will report the highest book value on the December Year balance sheet?
d Calculate the retained earnings on the December Year balance sheet.
d Which company will report the highest amount of retained earnings on the December Year balance sheet?
e Which company will report the lowest amount of cash flow from operating activities on the Year statement of cash flows?
d Which company will report the highest amount of retained earnings on the December Year balance sheet? b Calculate the net income for Year
Note: Round your "Per Unit Cost" to decimal places.
b Which company will report the lowest amount of net income for Year c Calculate the book value on the December Year balance sheet.
Note: Round "Per Unit Cost" to decimal places.
c Which company will report the highest book value on the December Year balance sheet?
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