Tubby Toys estimates that its new line of rubber ducks will generate sales of $6.70 million, operating costs of $3.70 million, and a depreciation expense of $.70 million. Assume the tax rate is 40%.

a.Calculate the operating cash flow for the year by using all three methods: (a) adjusted accounting profits; (b) cash inflow/cash outflow analysis; and (c) the depreciation tax shield approach. (Enter your answers in millions rounded to 2 decimal places.)

MethodCash FlowAdjusted accounting profits$ millionCash inflow/cash outflow analysis millionDepreciation tax shield approach million

b.Are the above answers equal?YesNo