Cash flow (1-5) Units bought in month 1 Increase in units bought each month Months units...

  

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Cash flow (1-5) Units bought in month 1 Increase in units bought each month Months units sit on shelf as inventory (For instance, units bought in month 1 are sold in month 3.) 20 7 2 Sales Price Per Unit 61 Cost Per Unit 48 Received Immediately 0% Received one month later 28% Received two months later 72% Paid immediately 68% Paid one month later 32% Rent 740 Electricity Advertising 230 300 230 262 Trash Removal Wages Months 1-4 Wages Rest of Story 563 1. What is the net cash outflow for months 1-5? A Between 10.000 and 14,200 B Between 14,200 and 15,000 C Between 15.000 and 15,800 D Between 15,800 and 18.000 2. Suppose you could make one change to the original story. In particular, you found a way to collect faster. Details are: Received In Immediately 27% One Month Later 28% Two Months Later 45% What is the improvement in cash flow? A Between 300 and 770 B Between 770 and 940 C Between 940 and 1.110 D Between 1,110 and 1,500 3. Suppose you could make one change to the original story. In particular, you found a way to pay slower. Details are: Paid Out Immediately One Month Later 36% 64% What is the improvement in cash flow? A Between 300 and 580 B Between 580 and 700 C Between 700 and 820 D Between 820 and 1,150 Cash flow (1-5) Units bought in month 1 Increase in units bought each month Months units sit on shelf as inventory (For instance, units bought in month 1 are sold in month 3.) 20 7 2 Sales Price Per Unit 61 Cost Per Unit 48 Received Immediately 0% Received one month later 28% Received two months later 72% Paid immediately 68% Paid one month later 32% Rent 740 Electricity Advertising 230 300 230 262 Trash Removal Wages Months 1-4 Wages Rest of Story 563 1. What is the net cash outflow for months 1-5? A Between 10.000 and 14,200 B Between 14,200 and 15,000 C Between 15.000 and 15,800 D Between 15,800 and 18.000 2. Suppose you could make one change to the original story. In particular, you found a way to collect faster. Details are: Received In Immediately 27% One Month Later 28% Two Months Later 45% What is the improvement in cash flow? A Between 300 and 770 B Between 770 and 940 C Between 940 and 1.110 D Between 1,110 and 1,500 3. Suppose you could make one change to the original story. In particular, you found a way to pay slower. Details are: Paid Out Immediately One Month Later 36% 64% What is the improvement in cash flow? A Between 300 and 580 B Between 580 and 700 C Between 700 and 820 D Between 820 and 1,150

Answer rating: 100% (QA)

Q1 The answer is B Between 14200 and 15000 The exact answer is 14853 To answer this question we must prepare a cash flow statement as below Calculatio... View the full answer