Given Information: Time span: 10 years Profits: $3500 annually Expenses: $3140 annually + $1500 for equipment with life of 10 years and salvage value of $1000. The equipment depreciates with the straight line method, half life convention for 39 years (1/39) to depreciate the equipment. Loans: $1000 with 6% interest, to be paid over 10 years. The interest on the loan is tax deductible. Tax income rate: 27.98% Assume MARR = 10% Inflation rate = 1.4% Determine the following: 1. The taxable income 2. Income taxes 3. Tax deductions 4. Total net income. 5. (Extra Credit) Prepare a cash flow statement Given Information: Time span: 10 years Profits: $3500 annually Expenses: $3140 annually + $1500 for equipment with life of 10 years and salvage value of $1000. The equipment depreciates with the straight line method, half life convention for 39 years (1/39) to depreciate the equipment. Loans: $1000 with 6% interest, to be paid over 10 years. The interest on the loan is tax deductible. Tax income rate: 27.98% Assume MARR = 10% Inflation rate = 1.4% Determine the following: 1. The taxable income 2. Income taxes 3. Tax deductions 4. Total net income. 5. (Extra Credit) Prepare a cash flow statement