Auditors of ERP systems: a. focus on output controls such as independent verification to reconcile batch totals. b. need not be concerned about segregation of duties because these systems possess strong computer controls. c. are concerned that managers fa

The five-year cash flow estimate for Auburn Concrete Inc.'s proposed purchase of a new concrete mixer can be calculated as follows: - Year 0: Initial cost of the mixer is $90,000, which is an outflow of cash for the company. - Year 1: The mixer will generate savings of $40,000, which is an inflow of cash for the company. The depreciation expense for the year is $30,000 ([$90,000 - $20,000] / 3), which is a non-cash expense. The tax savings due to this depreciation expense are $9,000 ($30,000 x 30%), which is an inflow of cash for the company. - Year 2: Same as Year 1, savings of $40,000 and tax savings of $9,000, but with no depreciation expense. Therefore, the total inflow of cash for the company is $49,000. - Year 3: Same as Year 2. - Year 4: The mixer will generate savings of $40,000. The company will receive an inflow of cash from selling the mixer for $20,000. The depreciation expense for the year is $0, as the salvage value of the mixer has been reached. The tax savings for the year are $4,800 ($16,000 x 30%). Therefore, the total inflow of cash for the company in Year 4 is $64,800 ($40,000 + $20,000 + $4,800). - Year 5: The company will receive an inflow of cash from the sale of the mixer for $20,000. The tax savings for the year are $2,400 ($8,000 x 30%). Therefore, the total inflow of cash for the company in Year 5 is $22,400 ($20,000 + $2,400). Adding up the cash inflows and outflows for each year, the five-year cash flow estimate for the proposal is: - Year 0: -$90,000 - Year 1: +$49,000 - Year 2: +$49,000 - Year 3: +$49,000 - Year 4: +$64,800 - Year 5: +$22,400 Therefore, the total cash inflow for the five years is $154,200.