Question 1: Accounting Analysis - changes in accounting method (12 marks) You are reviewing the 2017 annual report of Powerful Corporation and you find the following items in its footnotes: 1. The useful life of equipment has been decreased from 10 to 8 years. 2. The company has started to capitalize small tools purchased beginning in year 2017 instead of expensing these items. For each of the above, determine the effect (increase, decrease or no effect) of the change on the ratios listed below for the year 2017 separately with brief reasons. a. Debt to equity ratio (4 marks) b. Return on assets ratio (4 marks) c. Cash flow from operation (4 marks) Please present your answers with explanation in a table format