You have just completed a feasibility study for a new coffee shop in some retail space you own. You bought the space two years ago for , and if you sold it today, you would net after taxes. Outfitting the space for a coffee shop would require a capital expenditure of plus an initial investment of in inventory. What is the correct initial cash flow for your analysis of the coffee shop opportunity?

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?