Revenues Expenses O Forward has the following information related to four F-Booster revenue arrangements during the first quarter of 2020: 2 Forward Industries manufactures emergency power equipment. Its most popular generator is a model called the F-Booster, which has a retail price of $1,500 and costs Forward $740 to manufacture. It sells the F-Booster on a standalone basis directly to businesses, as well as provides installation services. Forward also distributes the F-Booster through a consignment agreement with Home Depot. Income data for Forward's first quarter of 2020 from operations other than F-Booster generators are as follows: 3 3 5 6 Instructions: $6,500,000 4,350,000 Forward entered into an arrangement with Piggly Wiggly in eastern Minnesota to deliver F-Boosters for the meat lockers in the grocers' stores. Forward provides a 5% volume discount for F-Boosters purchased by Piggly Wiggly if at least $450,000 of F-Boosters are purchased during 2020. By March 31, 2020, Forward has made sales of $360,000 ($1,500 240 generators) to Piggly Wiggly. Based on prior experience with this promotion in two 1 neighboring states, the discount threshold is met for the year if more than one-half of the target had been met by mid-year. On January 1, 2020, Forward sells 20 F-Boosters to Washington D.C. Nick's signs a 6-month note due in 6 months at an annual interest rate of 12%. Forward allows Nick's to return any F-Boosters that it cannot use within 120 days and receive a full refund. Based on prior experience, Forwards estimates that three units will be returned (using the most likely outcome approach). Forwards costs to recover the products will be immaterial, and the returned generators are expected be resold at a profit. No F-Boosters have been returned as of March 31, 2020, and Forward still estimates that three 2 units will be returned in the future. Forward sells 30 F-Boosters to a hospital in the Florida Keys for a total contract price of $50,000. In addition to the F-Boosters, Forward also provides installation at a standalone selling price of $200 per F-Booster; the cost to Forward to install is $150 per F-Booster The F-Boosters are delivered and 3 installed on March 1, 2020, and full payment is made to Forward. Forward ships 300 F-Boosters to Home Depot on consignment. By March 31, 2020, Home Depot has sold three-fourths of the consigned merchandise at 4 the listed price of $1,500 per unit. Home Depot notifies Forward of the sales, retains an 8% commission, and remits the cash due to Forward. Determine net income for Forward Industries for the first quarter of 2020. (Ignore taxes). Hint: Determine the net income amount for each individual a. arrangement above and then add the four together. Each scenario is worth 5 points. Show your work so you can earn partial credit. In reviewing the credit history of Nick's Liquors, Forward has some concerns about the collectibility of the full amount due on the note. Briefly discuss b. how collectibility of the note affects revenue recognition and income measurements for Forward Industries. 3 9 O Provide your solution below: clearly indicate (a) & (b) with your answer. If this is not labelled - points will be deducted.