Accounting, Analysis, and Principles Concord Industries manufactures sump-pumps. Its most popular product is called the Super Soaker, which has a retail price of $1,130 and costs $540 to manufacture. It sells the Super Soaker on a standalone basis directly to businesses. Concord also provides installation services for these commercial customers, who want an emergency pumping capability (with regular and back-up generator power) at their businesses. Concord also distributes the Super Soaker through a consignment agreement with Menards. Income data for the first quarter of 2017 from operations other than the Super Soaker are as follows. Revenues $10,029,000 Expenses 7,027,000 Concord has the following information related to two Super Soaker revenue arrangements during the first quarter of 2017 1. Concord sells 3 Super Soakers to businesses in flood-prone areas for a total contract price of $54,800. In addition to the pumps, Concord also provides installation (at a cost of $160 per pump). On a standalone basis, the fair value of this service is $210 per unit installed. The contract payment also includes a $11 per month service plan for the pumps for 3 years after installation (Concord's cost to provide this service is $7 per month). The Super Soakers are delivered and installed on March 1, 2017, and full payment is made to Concord. Any discount is applied to the pump/installation bundle. 2. During ships 300 Super Soakers to Menards on consignment. By March 31, 2017, Menards has sold two-thirds of the consigned merchandise at the listed price of $1,130 per unit. Menards notifies Concord of the sales, retains a 5% commission, and remits the cash due Concord Determine Concord Industries' 2017 first-quarter net income. (Ignore taxes.) Net income Determine free cash flow for Concord Industries for the first quarter of 2017. In the first quarter, Concord had depreciation expense of $177,000 and a net increase in working capital (change in accounts receivable and accounts payable) of $275,000. In the first quarter, capital expenditures were $527,000; Concord paid dividends of $110,000. Free cash flow