Please show work on how you got the answers

1. Use the information below to calculate Operating Cash Flow using three of the four methods. (Be sure to show your work to get full credit):

Tax Rate 35%

Sales 720,000

Costs 450,000

Depreciation 65,000

2.Justins Landscaping Service purchased an industrial riding mower two years ago for $21,000. At the time, Justins accountants told him to depreciate it using straight line over five years. Now Justin has found that a new and improved mower has just come out and he wants to sell his old mower. He can get $11,000 for it. Justin is in the 35% tax bracket.

What is the after tax salvage value of the old mower? ___________________

3.Daphne just purchased a fancy new tire balancer for her automotive service business. The cost was $33,000. Daphne is trying to decide whether to use MACRS or straight line depreciation. The balancer is a 3 year asset. Daphne is in the 35% tax bracket. Compute the deprecation under both methods and compute the tax savings in year 2 if she uses MACRS.

MACRS Percentage MACRS Dep Amount Straight Line Dep Amount Tax Effect

1. .3333 ______________ _______________

2. .4444 ______________ _______________ _____________

3. .1482 ______________ _______________

4. .0741 ______________