Company A has increased its yearly amortization expense by $13,000 resulting in a yearly $4,810 increase in cash flow. Company B has also increased its amortization expense by $13,000 but their yearly increase in cash flow is only $3,770. Assume in both cases that all non- amortization related cash flows are unchanged year over year. Why would this happen?

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The Answer of Company A has increased its yearly amortization expense by $13,000 resulting in a yearly $4,810 increase in cash flow. Company B has also increased its amortization expense by $13,000 but their yearly increase in cash flow is only $3,770. Assume in both cases that all non- amortization related cash flows are unchanged year over year. Why would this happen?

Company a Has Increased Its Yearly Amortization Expense by $13,000