Valentine Manufacturing purchased a printing press on January 1, 1997 for $24,000 cash. Using the straight-line method, the company depreciated the press over a three-year useful life. REQUIRED:

a. Compute the book value of the printing press at the end of each of the three years.

b. Complete a chart like the following. _ 1997 1998 1999 Total Depreciation expense Cash outflow associated with the purchase of the press c.What is the purpose of the adjustments at the end of each period? Chapter 5 The Mechanics of Financial Accounting 241 E5-15 (The difference between accrual and cash accounting) E5-16 (The difference between net income and net cash flowfrom operations) E5-17 (Preparing a statement of cash flowsfrom original transactions)