Question No: 02 Marks: 061 Following are the financial statement data for Madian Company. The company capitalizes its research & development cost. Reported Pretax Income Cash Flow from Operation Cash Flow from Investment Sharchulders' Equity 2009 Tk. 250,000 100.000 80,000 738,000 2010 2011 Tk. 300,000 1.325,000 120.000 135.000 (50,000) (75,0X10) 812.000 880,000 Capitalized Research & Development Costs: 2009 2010 2011 Opening Balance TK 42,600 47,000 65,000 Additions 15,600 18.200 27.000 Closing Balance (net) 22,700 36,000 41,300 Show what changes will incur in the net income, cash flows and sharcholders' equity of the company for the year 2010 & 2011 if the company changes from capitalization to expensing method. The company has 40% Tax bracket