Three different companies each purchased trucks on January 1, Year 1, for $78,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 82,000 miles in Year 1, 52,000 miles in Year 2, 47,000 miles in Year 3, and 72,000 miles in Year 4. Each of the three companies earned $67,000 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. Required a-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1? b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4? c-1. Calculate the book value on the December 31, Year 3, balance sheet. c-2. Which company will report the highest book value on the December 31, Year 3, balance sheet? d-1. Calculate the retained earnings on the December 31, Year 4, balance sheet. d-2. Which company will report the highest amount of retained earnings on the December 31, Year 4, balance sheet? e. Which company will report the lowest amount of cash flow from operating activities on the Year 3 statement of cash flows? Complete this question by entering your answers in the tabs below. Required A Required B Lowest cash flow Required C Required D Required E Which company will report the lowest amount of cash flow from operating activities on the Year 3 statement of cash flows?

Three different companies each purchased trucks on January 1, Year 1, for \$78,000. Each truck was expected to last four years or 250.000 miles. Salvage value was estimated to be $6,000. All three trucks were driven 82,000 miles in Year 1,52,000 mites til Year 2 47,000 miles in Year 3 , and 72000 miles in Year 4 . Each of the three companies earned $67,000 of cash revenue during each of the four years, Company A uses stralghtiline depreciation, company B uses double-declining-balance depreciation, and company C uses Answer each of the following questions, Ignore the effects of income taxes. Required a-1. Calculate the net income for Year 1. a-2. Which company will report the highest amount of net income for Year 1 ? b-1. Calculate the net income for Year 4. b-2. Which company will report the lowest amount of net income for Year 4 ? c-1. Calculate the book value on the December 31, Year 3, balance sheet. c-2. Which compary will repoit the highest book value on the December 31 , Year 3 , balance sheet? d-1. Calculate the retained earnings on the Decernber a, Year 4, balance sheet d-2. Which company will report the tighest amount of retalned eamings on the December at, Year 4 , balance shecet? e. Which company will report the fowest amount of cash flow from operating activities on the Year 3 staterient of eas h flows? Complete this question by entering your onswers in the tabs below. Which cormpany will report the lowest amount of cash flow from operating actures on the Yoar 3 statement of cash flowi