a. Set up an income statement. What is Bemdt's expected net income? Its expected net cash flow? Enter your answers in dollars. For example, an answer of $1.2 million should be entered as 1,200,000. Round your answers to the nearest dollar. Net income: 5 Net cash flow: $ b. Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What would hoppen to reported profit and to net cash flow? 1. If depreciation doubled, taxable income would fall to zero, taxes would be zero, and net cash flow would be unaffected. II. If depreciation doubled, taxable income would fall to zero, taxes would be zero, and net cash flow would rise. III. If depreciation doubled, taxable income would fall to zero, taxes would be zero, and net cash flow would decline. IV. If depreciation doubled, taxable income would not be affected since depreciation and amortization are non-cash expenses, Net cash flow would also be unaffected. V. If depreciation doubled, taxable income would not be affected since depreciation and amortization are non-cash expenses. Net cash fiow would double. c. Now suppose that Congress changed the tax law such that, instead of doubling Berndt's depreciation, it was reduced it by so\%, How would profit and net cash flow be affected? 1. If depreciation were halved, taxable income, taxes, and net cash flow would all decline. II. If depreciation were halved, taxable income and net cash fiow would rise but taxes would fall. III. If depreciation were halved, taxable income and taxes would rise but net cash flow would fali. IV. If deprecation were halved, taxable income, taxes, and net cash fiow would all rise. V. If depreciation were halved, taxable income and taxes would decline but net cash flow would rise