Three different companies each purchased a machine on January 1, 2008, for $42,000 Each machine was expected to last five years or 200,000 hours Salvage value was estimated to be $2,000 All three machines were operated for 50,000 hours in 2008, 55,000 hours in 2009, 40,000 hours in 2010, 44,000 hours in 2011, and 31,000 hours in 2012 Each of the three companies earned $30,000 of cash revenue during each of the five years Company A uses straight line depreciation, company B uses double declining balance depreciation, and company C uses units of production depreciation Requirement 1 Answer each of the following questions Ignore the effects of income taxes (a) Calculate the Net income for the following companies for 2008 (Omit the $ sign in your response ) Net Income Company A $ Company B $ Company C $ (b) Which company will report the highest amount of net income for 2008 (Click to select)Company CCompany BCompany A Requirement 2 (a) Calculate the Net income for the following companies for 2010 (Omit the $ sign in your response ) Net Income Company A $ Company B $ Company C $ (b) Which company will report the lowest amount of net income for 2010 (Click to select)Company A BCompany B CCompany A C Requirement 3 (a) Calculate the Book value for the following companies from the year 2008, 2009 and 2010 (Omit the $ sign in your response ) Book value Company A $ Company B $ Company C $ (b) Which company will report the highest book value on the December 31, 2010, balance sheet (Click to select)Company BCompany ACompany C Requirement 4 (a) Calculate the Retained earnings for the following companies for the year 2011 (Round your answers to nearest dollar amount Omit the $ sign in your response ) Retained earnings Company A $ Company B $ Company C $ (b) Which company will report the highest amount of retained earnings on the December 31, 2011, balance sheet (Click to select)Company CCompany BCompany A Requirement 5 Which company will report the lowest amount of cash flow from operating activities on the 2010 statement of cash flows (Click to select)All companies will have the same cash flows from Operating activities All companies will have the different cash flows from Operating activities

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Three different companies each purchased a machine on January 1, 2008, for $42,000. Each machine was expected to last five years or 200,000 hours. Salvage

Three different companies each purchased a machine on January 1, 2008, for $42,000. Each machine was expected to last five years or 200,000 hours. Salvage value was estimated to be $2,000. All three machines were operated for 50,000 hours in 2008, 55,000 hours in 2009, 40,000 hours in 2010, 44,000 hours in 2011, and 31,000 hours in 2012. Each of the three companies earned $30,000 of cash revenue during each of the five years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation.

Requirement 1:

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

(a)

Calculate the Net income for the following companies for 2008? (Omit the "$" sign in your response.)

	Net Income
Company A	$
Company B	$
Company C	$

(b)	Which company will report the highest amount of net income for 2008?
	(Click to select)Company CCompany BCompany A

Requirement 2:
(a)	Calculate the Net income for the following companies for 2010? (Omit the "$" sign in your response.)

	Net Income
Company A	$
Company B	$
Company C	$

(b)	Which company will report the lowest amount of net income for 2010?
	(Click to select)Company A & BCompany B & CCompany A & C

Requirement 3:
(a)	Calculate the Book value for the following companies from the year 2008, 2009 and 2010? (Omit the "$" sign in your response.)

	Book value
Company A	$
Company B	$
Company C	$

(b)	Which company will report the highest book value on the December 31, 2010, balance sheet?
	(Click to select)Company BCompany ACompany C

Requirement 4:
(a)	Calculate the Retained earnings for the following companies for the year 2011? (Round your answers to nearest dollar amount. Omit the "$" sign in your response.)

	Retained earnings
Company A	$
Company B	$
Company C	$

(b)	Which company will report the highest amount of retained earnings on the December 31, 2011, balance sheet?
	(Click to select)Company CCompany BCompany A

Requirement 5:

Which company will report the lowest amount of cash flow from operating activities on the 2010 statement of cash flows?

(Click to select)All companies will have the same cash flows from Operating activities.All companies will have the different cash flows from Operating activities.