Lane Accessories has a growing demand for custom Apple watch designer bands. The current manufacturing costs are $120 per hour to operate, for each hour of operation, 210 black band designs and 180 multi-color designs are completed. However, Lane found a new larger manufacturing space that will cost $160 per hour and produce 325 black design bands and 289 multi-color bands per hour completed. Lane has newly placed orders to restock other retail outlets nationwide for 6,000 black band designs and 5,000 multi-color bands. Because Lane is out of inventory, she needs to decide how many hours to operate each facility to fulfill orders while minimizing cost. Formulate the minimization function for production costs.

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?