Reference no: EM133009615

In its Year 5 annual report, Allen Company reports the following (in thousands):

                                                                      Year 5                  Year 4
Total revenue                                     $92,250                $89,460
Property, plant, equipment, gross            37,170                    34,830
Property, plant, equipment, net                14,886                  13,415
Depreciation expense                              1,742                     1,490

Problem 1: If revenue growth is projected to be 5%, the Year 6 forecasted depreciation expense to be added back on the statement of cash flows is:

Select one:

a. $1,933 thousand

b. $1,742 thousand

c. None of these are correct

d. $1,829 thousand

e. $1,859 thousand