An income statement for the first year of operations for Patti Company appears below: Sales $390,000
Dividend revenue 39,000
Interest revenue 24,050
Cost of goods sold (208,000 )
Salary expense (26,000 )
Depreciation expense (70,200 )
Income tax expense (109,200 )
Net income $39,650

Additional information:

a. Accounts payable, end of year, $13,000.
b. Salaries payable, end of year, $8,450.
c. Inventories, end of year, $26,000.
d. Accounts receivable, end of year, $32,500.

Required:
Use the direct approach to calculate the cash provided (used) by operating activities for Patti Company.

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers. firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?