Sandhill Corporation's capital structure consists of 50,000 shares of common stock. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information:

Sales revenue $1,238,000
Discontinued operations loss (net of tax) 63,000
Selling expenses 126,600
Cash 59,400
Accounts receivable 90,800
Common stock 200,000
Cost of goods sold 702,300
Accumulated depreciation-machinery 180,800
Dividend revenue 8,300
Unearned service revenue 4,700
Interest payable 1,600
Land 370,000
Patents 112,000
Retained earnings, January 1, 2020 253,870
Interest expense 18,900
Administrative expenses 165,400
Dividends declared 26,400
Allowance for doubtful accounts 5,400
Notes payable (maturity 7/1/23) 205,000
Machinery 452,000
Materials 38,200
Accounts payable 57,400

The amount of income taxes applicable to income was $69,930, excluding the tax effect of the discontinued operations loss which amounted to $27,000.

Prepare a multiple-step income statement.

Cardinal company is considering a project that would require a $2,725,000 investment in equipment with a useful life of five years. at the end of five years, the project would terminate and the equipment would be sold for its salvage value of $400,000. the company’s discount rate is 14%. the project would provide net operating income each year as follows: sales $2,867,000 variable expenses 1,125,000 contribution margin 1,742,000 fixed expenses: advertising, salaries, and other fixed out-of-pocket costs $706,000 depreciation 465,000 total fixed expenses 1,171,000 net operating income $571,000 1. which item(s) in the income statement shown above will not affect cash flows? (you may select more than one answer. single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. any boxes left with a question mark will be automatically graded as incorrect.) (a)sales (b)variable expenses (c) advertising, salaries, and other fixed out-of-pocket costs expenses (d) depreciation expense 2. what are the project’s annual net cash inflows? 3.what is the present value of the project’s annual net cash inflows? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 4.what is the present value of the equipment’s salvage value at the end of five years? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.) 5.what is the project’s net present value? (use the appropriate table to determine the discount factor(s) and final answer to the nearest dollar amount.)