[The following information applies to the questions displayed below.]

Three different companies each purchased trucks on January 1, 2018, for $72,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $7,000. All three trucks were driven 67,000 miles in 2018, 42,000 miles in 2019, 40,000 miles in 2020, and 62,000 miles in 2021. Each of the three companies earned $61,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation.

Answer each of the following questions. Ignore the effects of income taxes.

1. b-1. Calculate the net income for 2021? (Round "Per Unit Cost" to 3 decimal places.)

Net Income
Company A	not attempted
Company B	not attempted
Company C

1. b-2. Which company will report the lowest amount of net income for 2021?

• Company A

• Company B

• Company C

• All of the choices

c-1. Calculate the book value on the December 31, 2020, balance sheet? (Round "Per Unit Cost" to 3 decimal places.)

Book Value
Company A	not attempted
Company B	not attempted
Company C

c-2. Which company will report the highest book value on the December 31, 2020, balance sheet?

• Company A

• Company B

• Company C

• All of the choices

d-1. Calculate the retained earnings on the December 31, 2021, balance sheet?

Retained Earnings
Company A	not attempted
Company B	not attempted
Company C

d-2. Which company will report the highest amount of retained earnings on the December 31, 2021, balance sheet?

• Company A

• Company B

• Company C

• All companies have the same retained earnings

[The following information applies to the questions displayed below.]

Three different companies each purchased trucks on January 1, 2018, for $72,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $7,000. All three trucks were driven 67,000 miles in 2018, 42,000 miles in 2019, 40,000 miles in 2020, and 62,000 miles in 2021. Each of the three companies earned $61,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation.

Answer each of the following questions. Ignore the effects of income taxes.

5. Which company will report the lowest amount of cash flow from operating activities on the 2020 statement of cash flows?

6. The cash flow from operating activities will be	not attempted	for	not attempted	if income tax is not considered.
   Depreciation expense	not attempted	a cash flow item.