Luna company expects sales in 2018 to be 15,000,000 ALL. Operating cost without depreciation is expected to be 65% of sales, depreciation 2,000,000 ALL. All sales will be collected immediately and expenses other than depreciation will be settled within the year. The tax rate is 40%.

Build the SAP and cash flow statement. What is the operating cash flow? Assume that depreciation costs will double and all others will remain unchanged. What will happen to the accounting profit and the cash gain? What if depreciation costs are halved, what will happen to the accounting profit and the cash gain?