Quilcene Oysteria farms and sells oysters in the Pacific Northwest. The company harvested and sold 7,700 pounds of oysters in August. The company’s flexible budget for August appears below: Quilcene Oysteria
Flexible Budget
For the Month Ended August 31
Actual pounds (q) 7,700
Revenue ($4.10q) $ 31,570
Expenses:
Packing supplies ($0.25q) 1,925
Oyster bed maintenance ($3,100) 3,100
Wages and salaries ($2,100 + $0.45q) 5,565
Shipping ($0.80q) 6,160
Utilities ($1,280) 1,280
Other ($430 + $0.01q) 507
Total expense 18,537
Net operating income $ 13,033
The actual results for August appear below:
Quilcene Oysteria
Income Statement
For the Month Ended August 31
Actual pounds 7,700
Revenue $ 26,500
Expenses:
Packing supplies 2,095
Oyster bed maintenance 2,960
Wages and salaries 5,975
Shipping 5,890
Utilities 1,090
Other 1,127
Total expense 19,137
Net operating income $ 7,363

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.)