Hart, attorney at law, experienced the following transactions in 2018, the first year of operations.1. accepted $18,600 on april 1, 2018 as a retainer for services to be performed evenly over the next 12 months.2. performed legal services for cash of $68,0003. purchased $1,150 of office supplies on account.4. paid $1035 of the amount due on accounts payable.5. paid a cash dividend to the stockholders of $5,1006. paid cash for operating expenses of $21,0007. determined that at the end of the accounting period $100 of office supplies remained on hand.8. on december 31, 2018, recognized the revenue that had been earned for services performed on accordance with transaction 1.requiredshow the effects of the events on the financial statements using a horizontal statement model. in the cash flow column, use the initials oa to designate 'operating activity'; ia for 'investing activity'; fa for 'financial activity'; and nc for 'net change in cash'. use na to indicate accounts not affected by the even

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51