Rumana Cycling Company has sales of $$12$ million in $2003.$ Costs other then depreciation and

amortization are expected to be $75\%$ of sales, and dep. and amt. expenses are expected to be $$1\mathrm{.}5$ million.

All sales, revenue will be collected in cash, and costs others than depreciation and amortization must be

paid for during the year. The Company's tax rate is $40\%.$

a$.$ Suppose Congress changed the tax lows so that the dep. & amt, expenses doubled no changes in

operations occurred. Construct an income statement.

b$.$ Suppose that the dep. & amt. expenses, reduced by $50\%$ what would the new income statement

look like.