Nature's way inc. is planning to invest in new manufacturing equipment to make a new garden tool. the new garden tool is expected to generate additional annual sales of 2,500 units at $60 each. the new manufacturing equipment will cost $227,000 and is expected to have a 10-year life and $17,000 residual value. selling expenses related to the new product are expected to be 5% of sales revenue. the cost to manufacture the product includes the following on a per-unit basis: direct labor $ 8.00 direct materials 22.00 fixed factory overhead—depreciation 8.40 variable factory overhead 3.60 total $42.00 determine the net cash flows for the first year of the project, years 2–9, and for the last year of the project. use a minus sign to indicate cash outflows. do not round your intermediate calculations but, if required, round your final answer to the nearest dollar. cornucopia inc. net cash flows year 1 years 2-9 last year initial investment $ operating cash flows: annual revenues $ $ $ selling expenses cost to manufacture net operating cash flows $ $ $ total for year 1 $ total for years 2-9 $ residual value total for last year

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.

Tri fecta, a partnership, had revenues of $369,000 in its first year of operations. the partnership has not collected on $45,000 of its sales and still owes $39,500 on $155,000 of merchandise it purchased. there was no inventory on hand at the end of the year. the partnership paid $27,000 in salaries. the partners invested $48,000 in the business and $23,000 was borrowed on a five-year note. the partnership paid $2,070 in interest that was the amount owed for the year and paid $9,500 for a two-year insurance policy on the first day of business. compute net income for the first year for tri fecta.