Warren Company plans to open a new repair service center for one of its electronic products. The center requires an investment in depreciable assets costing $460,000. The annual income statement for the center is given below Revenues Less: Cash operating expenses Depreciation $440,000 (176,000) (115,000) $149,000 59,600 $89,400 Income before income taxes Less: Income taxes (@40%) Net income Required: 1. Using the income approach, calculate the after-tax cash flows. 2. Using the decomposition approach, calculate the after-tax cash flows for each item of the income statement and show that the total is the same as the income approach. Revenue (after tax) Cash expenses (after tax) Depreciation tax savings Operating cash flow 3. What if it is desirable to express the decomposition approach in a spreadsheet format for the four years to facilitate the use of spreadsheet software packages? Express the after-tax cash expenses as negative amounts. Enter the after-tax revenues and the tax savings from noncash expenses as positive amounts Cash operating Noncash operating Cash flow Year Revenue expenses expenses 4