Read the Chapter 4 in the book: Introduction to Accounting and Finance, First Edition, by Bergevin then respond to the required questions in a Word document.
Case 4–1 Instructions:
- Cast yourself in the role of Andrea Accrual and complete two income statements.
- Cast yourself in the role of Carlos Cash and complete the two cash flow statements.
- Co-write an executive summary from Andrea and Carlos either in support of or against acquiring the new delivery equipment. (The memo should include a statement as to why you believe straight-line depreciation is better than accelerated depreciation from a profitability standpoint.)
To reflect the history of the delivery equipment and to support your decision, complete the financial information in the Chapter 4 Case 4-1 Supporting Templates Word document. (Attached template)