MOCHI creates a franchise for the sale of a particular product. MOCHI incurs $360,000 initial direct costs for each franchise granted. At December 31, 2018, the following franchises have open accounts with MOCHI. #+ CHAIR TABLE LAMP LAPTOP CASH PAID (DOWN PAYMENT) 200 000 200 000 200 000 200 000 NOTE UNPAID (FACE: 1,000,000) 700 000 400 000 910 000 550 000 SERVICES COMPLETED 25% 10% 95% 100% PROBABILITY OF COLLECTION LIKELY UNLIKELY UNLIKELY LIKELY CONTINUING FRANCHISE FEE 1% OF NI 1% OF NI 1% OF NI 1% OF NI PERIOD OF REFUND 1/31/2019 2/28/2019 12/30/2018 12/30/2018