4 Units bought in month 1 5 Increase in units bought each month 6 Months units sit on shelf as inventory 7 (For instance, units bought in month 1 are sold in month 3.) 9 Sales Price Per Unit 10 Cost Per Unit 12 Received Immediately 13 Received one month later 14 Received two months later 0% 23% 77% 69% 16 Paid immediately 17 Paid one month later 31% 18 19 Rent 20 Electricity 21 Advertising 22 Trash Removal 23 Wages Months 1-4 24 Wages Rest of Story 710 280 210 250 247 510 1. What is the net cash outflow (total out minus total in) 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 Cash Flow (1-5) continued 3 2. Suppose you could make one change to the original story. In particular, you found a way to collect faster. Details are: 5 Received In 5 Immediately 24% 7 One Month Later 28% 3 Two Months Later 48% 2 What is the improvement in cash flow? -3 A Between 300 and 770 4 B Between 770 and 940 55 C Between 940 and 1,110 56 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 34% One Month Later 66% 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