Depreciation Change of Net Income and Cash Flow
Reported $9,000 of sales, $6,000 of operating costs other than depreciation, and $1,500 of depreciation. The firm had no amortization charges, it had issued $4,000 of bonds that carry a 7% interest rate, and its federal-plus-state income tax rate was 40%. 2006 data are expected to remain unchanged except for one item, depreciati