The MacCauley Company has sales of $$200$ million and total expenses $($excluding

depreciation$)$ of $$130$ million. Straight$-$line depreciation on the company$$s assets is

$$15$ million, and the maximum accelerated depreciation allowed by law is $$25$ million. Assume that all taxable income is taxed at $40$ percent. Assume also that net

working capital remains constant.

a$.$ Calculate the MacCauley Company$$s after$-$tax operating cash flow using both

straight$-$line and accelerated depreciation b$.$Assuming that the company uses straight$-$line depreciation for book purposes

and accelerated depreciation for tax purposes, show the income statement

reported to the stockholders. What is the after$-$tax operating cash flow under

these circumstances?