Below is the most recent annual nancial statement for Mistz: Misfitz Inc. Statement of operations For the year ending December 31 Storefront Ice cream trucks Total Sales $1,426,000 35 940,000 $2,366,000 Variable expenses 713,000 470,000 1,183,000 Contribution margin 713,000 470,000 1,183,000 Advertising 25,000 2,000 27,000 Rent 150,000 150,000 Utilities 17,000 12,000 29,000 Salary and wages 350,000 135,000 485,000 Depreciation 55,000 24,000 79,000 Operating income 1 16,000 297,000 413,000 Taxes 29,000 74,250 103,250 Net income M M M In the event that the storefront location closes, the Pines think the equipment will be sold to a competitor for $20,000, net of taxes and disposal costs. The current lease includes two parking spots that are used by the ice cream trucks. Each spot would continue to be leased at a rate of $6,000 annually. The current advertising budget benets both the storefront and the ice cream trucks. If the storefront is closed, the Pines expect the ice cream trucks' advertising budget to be increased to $13,000. The Pines would require that even with the closure they maintain their current salary of $100,000 each. The other employees in the storefront would be laid off. Lastly, in the storefront location, each year they cater several events over the winter holiday season. This would continue with the use of the trucks, which are not normally in service at that time. The revenues on these sales are $250,000, and it is expected this will incur additional utilities of $500. The Pines would like to understand the cash ow impact in the next ve years if they choose to close the storefront