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- An existing sporting goods manufacturer is creating a separate division to manufacture basketballs under a private label for a major retail chain. - The

image text in transcribed - An existing sporting goods manufacturer is creating a separate division to manufacture basketballs under a private label for a major retail chain. - The retail chain has guaranteed an order of 5,000 basketballs per month during the first year and will pay $12 per basketball. - The retailer has asked for terms that allow them to pay for its purchases in 60 days. - Each basketball costs the sporting goods company $5.50 to manufacture. - The operating expenses of the new division are expected to be $5,500 per month, - The division's profits are subject to a 21% corporate tax rate (paid monthly). - The division is going to begin operations on January 1,2024. I. 1. Prepare a profit and loss statements for January, February, and March 2024. (5pts) 2. Prevare cash flow statements for Ianuarv. Februarv. and March 2024. (5pts) - An existing sporting goods manufacturer is creating a separate division to manufacture basketballs under a private label for a major retail chain. - The retail chain has guaranteed an order of 5,000 basketballs per month during the first year and will pay $12 per basketball. - The retailer has asked for terms that allow them to pay for its purchases in 60 days. - Each basketball costs the sporting goods company $5.50 to manufacture. - The operating expenses of the new division are expected to be $5,500 per month, - The division's profits are subject to a 21% corporate tax rate (paid monthly). - The division is going to begin operations on January 1,2024. I. 1. Prepare a profit and loss statements for January, February, and March 2024. (5pts) 2. Prevare cash flow statements for Ianuarv. Februarv. and March 2024. (5pts)

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