sales price is 50

cost per unit is 36

Months units sit on shelf as inventory (For instance, units bought in month 1 are sold in month 3.) Sales Price Per Unit Cost Per Unit 36 0% Received Immediately Received one month later Received two months later 30% 70% Paid immediately Paid one month later 66% 34% O N 260 270 O Rent Electricity Advertising Trash Removal Wages Months 1-4 Wages Rest of Story N O N N N 1. What is the net cash outflow (total out minus total in) for months 1-5? A Between 10,000 and 14,200 B Between 14,200 and 15,000 C Between 15,000 and 15,800 D Between 15,800 and 18,000 Cash Flow (1-5) continued 2. Suppose you could make one change to the original story. In particular, you found a way to collect faster. Details are: Received In Immediately 22% One Month Later 28% Two Months Later 50% What is the improvement in cash flow? A Between 300 and 770 B Between 770 and 940 C Between 940 and 1,110 D Between 1,110 and 1,500 3. Suppose you could make one change to the original story. In particular, you found a way to pay slower. Details are: Paid Out Immediately 36% One Month Later 64% What is the improvement in cash flow? A Between 300 and 580 B Between 580 and 700 C Between 700 and 820 D Between 820 and 1,150 Months units sit on shelf as inventory (For instance, units bought in month 1 are sold in month 3.) Sales Price Per Unit Cost Per Unit 36 0% Received Immediately Received one month later Received two months later 30% 70% Paid immediately Paid one month later 66% 34% O N 260 270 O Rent Electricity Advertising Trash Removal Wages Months 1-4 Wages Rest of Story N O N N N 1. What is the net cash outflow (total out minus total in) for months 1-5? A Between 10,000 and 14,200 B Between 14,200 and 15,000 C Between 15,000 and 15,800 D Between 15,800 and 18,000 Cash Flow (1-5) continued 2. Suppose you could make one change to the original story. In particular, you found a way to collect faster. Details are: Received In Immediately 22% One Month Later 28% Two Months Later 50% What is the improvement in cash flow? A Between 300 and 770 B Between 770 and 940 C Between 940 and 1,110 D Between 1,110 and 1,500 3. Suppose you could make one change to the original story. In particular, you found a way to pay slower. Details are: Paid Out Immediately 36% One Month Later 64% What is the improvement in cash flow? A Between 300 and 580 B Between 580 and 700 C Between 700 and 820 D Between 820 and 1,150