The MacCauley Company has sales of $300 million and total expenses (excluding depreciation) of $250 million. Straight-line depreciation on the companys assets is $20 million, and the maximum accelerated depreciation allowed by law is $25 million. Assume that all taxable income is taxed at 40 percent. Assume also that net working capital remains constant. Enter your answers in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answers to one decimal place.

After-tax operating cash flow (straight-line depreciation): $ million

After-tax operating cash flow (accelerated depreciation): $ million

1. Calculate the MacCauley Companys after-tax operating cash flow using both straight-line and accelerated depreciation.

2. Assuming that the company uses straight-line depreciation for book purposes and accelerated depreciation for tax purposes, show the income statement reported to the stockholders.

   Revenues	$ million
   Total operating expenses	$ million
   Depreciation	$ million
   Operating earnings before tax	$ million
   Tax @ 40%	$ million
   Operating earnings after tax	$ million

   What is the after-tax operating cash flow under these circumstances?

   $ million