Effect of postponing an equipment purchase


Problem: Discuss the effect of postponing an equipment purchase on a company's set of financial statements (do not assume that the postponement would affect revenues or any operating costs other than depreciation and interest). Be sure to include the impact on the company's balance sheet, income statement, and statement of cash flows. Also discuss your opinion as to whether the company should act now or postpone. What do you think would be better for stockholders?

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Accounting Basics: Effect of postponing an equipment purchase
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