Ganus Products, Inc., has a Relay Division that manufactures and sells a number of products, including a standard relay that could be used by another division in the company, the Electronics Division, in one of its products. Data concerning that relay appear below: Capacity in units 55,000 Selling price to outside customers $ 43 Variable cost per unit $ 13 Fixed cost per unit (based on capacity) $ 25 The Electronics Division is currently purchasing 7,700 of these relays per year from an overseas supplier at a cost of $40 per relay. Assume that the Relay Division is selling all of the relays it can produce to outside customers. Also assume that $5 in variable expenses can be avoided on transfers within the company due to reduced shipping and selling costs. Does there exist a transfer price that would make both the Relay and Electronics Division financially better off than if the Electronics Division were to continue buying its relays from the outside supplier?

Virtual gaming systems balance sheets december 31 2018 2017 assets current assets: cash $ 409,500 $ 343,800 accounts receivable 64,000 80,000 inventory 160,000 145,000 prepaid rent 4,600 7,200 long-term assets: investments 205,000 110,000 land 215,000 270,000 equipment 250,000 220,000 accumulated depreciation (143,000) (110,000) total assets $ 1,165,100 $ 1,066,000 liabilities and stockholders' equity current liabilities: accounts payable $ 35,000 $ 98,000 interest payable 5,100 4,000 income tax payable 25,000 29,000 long-term liabilities: notes payable 265,000 235,000 stockholders' equity: common stock 460,000 400,000 retained earnings 375,000 300,000 total liabilities and stockholders’ equity $ 1,165,100 $ 1,066,000 additional information for 2018: 1. purchase additional investment in stocks for $95,000. 2. sell land costing $55,000 for $62,000, resulting in a $7,000 gain on sale of land. 3. purchase $30,000 in equipment by issuing a $30,000 long-term note payable to the seller. no cash is exchanged in the transaction. 4. declare and pay a cash dividend of $120,000. 5. issue common stock for $60,000. required: prepare the statement of cash flows using the indirect method. disclose any noncash transactions in an accompanying note. (list cash outflows and any decrease in cash as negative amounts.)