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5. Berful Corporation reports net income for 2016 as $52,000. Included on its income statement were Depreciation Expense of $4,600, and Amortization Expense of $600.

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5. Berful Corporation reports net income for 2016 as $52,000. Included on its income statement were Depreciation Expense of $4,600, and Amortization Expense of $600. During the year Accounts Receivable increased by $6,800, Inventories decreased by $3,800, Prepaid Expenses decreased by $400, Accounts Payable increased by $10,000, and Other Accrued Liabilities decreased by $900. The firm added $40,000 in new equipment, and borrowed $50,000 on a long- term note. Calculate Net Cash Flow from Operating Activities under US GAAP, using the indirect method, and record your answer on the following line. $ 6. Berful Industries has fixed costs of $500,000, unit variable costs of $20.00, and the only product it makes sells for $70 per unit. a. Calculate the contribution margin b. Calculate the contribution margin ratio C. Calculate breakeven in units d. Calculate the revenue required to generate a profit of $100,000 e. Calculate the new breakeven point if fixed costs decline to 6. Berful Industries has fixed costs of $500,000, unit variable costs of $20.00, and the only product it makes sells for $70 per unit. a. Calculate the contribution margin b. Calculate the contribution margin ratio c. Calculate breakeven in units d. Calculate the revenue required to generate a profit of $100,000 e. Calculate the new breakeven point if fixed costs decline to $450,000 f. Calculate the breakeven point if the price drops to $50.00 and fixed costs increase to $600,000 7. White Rock Lake Co. has an inventory of bicycle parts including part XC1 that cost $19,500. The part is now generally thought to be obsolete. However, it can be sold for $7,000 for non-bicycle applications, or modified for an additional cost of $10,000 and sold for $20,300. What action should be taken to maximize profit? Sell as is Modify and sell

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