(The effect of depreciation on cash from operations, LO 1, 3) In 2015 Anyox Ltd.

(Anyox) reported net income of $150,000. All revenues and expenses were in cash, except for a $22,000 depreciation expense.

Required:

a. Calculate cash from operations for Anyox in 2015.

b. Suppose that instead of a $22,000 depreciation expense in 2015 Anyox expensed

$33,000 for depreciation. Assume that all other revenues and expenses remained the same. What would Anyox’s net income be in 2015? What would its cash from operations be in 2015? Explain the reasons for any differences or similarities in your answer for when the depreciation expense was $22,000 and when it was

$33,000.