The Berndt Corporation expects to have sales of $12 million. Costs other than depreciation are expected to be 80% of sales, and depreciation is expected to be $1.2 million. All sales revenues will be collected in cash, and costs other than depreciation must be paid for during the year. Brendt's federal-plus-state tax rate is 35%. Berndt has no debt. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Income and Cash Flow Analysis Cash sales Costs other than depreciation as % of sales Depreciation Federal plus state tax rate Interest $12,000,000 80.00% $1,200,000 35.00% $0 Formulas $12,000,000 #N/A 1,200,000 Income Statement: Sales Costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Interest Pre-tax earnings Taxes Net income #N/A 0 $0 #N/A #N/A #N/A Net Cash Flow: Net income Depreciation Net cash flow 1,200,000 #N/A Original Depreciation Doubled $2,400,000 $12,000,000 #N/A 2,400,000 Income Statement: Sales Costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Interest Pre-tax earnings Taxes Net income #N/A 0 $0 #N/A #N/A #N/A Net Cash Flow: Net income Depreciation Net cash flow 2,400,000 #N/A Original Depreciation Halved $600,000 $12,000,000 #N/A 600,000 Income Statement: Sales Costs except depreciation Depreciation Earnings before interest and taxes (EBIT) Interest Pre-tax earnings Taxes Net income #N/A 0 $0 #N/A #N/A #N/A Net Cash Flow: Net income Depreciation Net cash flow 600,000 #N/A Would you prefer depreciation to be doubled or halved? #N/A a. Set up an income statement. What is Berndt's expected net cash flow? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answer to the nearest dollar. $ b. Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What is Berndt's expected net cash flow? Round your answer to the nearest dollar. c. Now suppose that Congress changed the tax laws such that, instead of doubling Berndt's depreciation, it was reduced by 50%. What is Berndt's expected net cash flow? Round your answer to the nearest dollar. d. If this were your company, would you prefer Congress to cause your depreciation expense to be doubled or halved