Three different companies each purchased trucks on January 1,2018, for $74,000. Each truck was expected to last four years or250,000 miles. Salvage value was estimated to be $5,000. All threetrucks were driven 80,000 miles in 2018, 60,000 miles in 2019,45,000 miles in 2020, and 70,000 miles in 2021. Each of the threecompanies earned $63,000 of cash revenue during each of the fouryears. Company A uses straight-line depreciation, company B usesdouble-declining-balance depreciation, and company C usesunits-of-production depreciation.
Answer each of the following questions. Ignore the effects ofincome taxes.
- Which company will report the lowest amount of cash flow fromoperating activities on the 2020 statement of cash flows?
