Answer:
Balance sheet
Inventory - Understatement by $11,600
Owners equity - Understatement by $11,600
Income statement
Cost of goods sold - Overstatement by $11,600
Net income - Understatement by $11,600
Explanation:
The movement in an inventory account which is the difference between the opening and ending balances is a function of the purchases and the sales during the period.
This is captured in the equation below
Opening balance + purchases - cost of goods sold = ending balance
Hence an understatement of the ending balance would result in an overstatement of the cost of goods sold thus an understatement of the net income (and owner's equity).
The understatement in closing inventory balance is
= $378,500 - $366,900
= $11,600.
Answer:
If the fall in price of good Y causes demand for good X to fall as well, the goods Y and X are complementary.
Explanation:
Complementary goods are those goods that people tend to buy together, since, as the word implies, they fulfill complementary purposes.
An example of two complementary goods are BBQ Sauce and Meat.
Meat is often used to grill/roast, and it is accompanied with BBQ Sauce. If BBQ Sauce price goes down, it is likely that more of it will be bought as well as more meat. The opposite occurs if the price of either good goes up. Hence, both goods are complementary.
<span>Technically, Kyle lied to Patrick about the time at which he would punch him. However, there is no contract to prove that this was what was said on the phone (heresay). Additionally, it does not mention that there was any sort of agreement or consideration made between the two of them regarding this. And even if there was, there might be a legality issue due to the fact that punching is both assault and battery when committed on a person, so the contract may not even be enforceable.
In terms of civil torts, Kyle didn't really commit anything that is pursuable in court, but did commit battery and assault. If Patrick fell or hit his head further and was injured/killed, he would be liable for an involuntary action, of which would be manslaughter if Patrick died. He would also be able to be sued for wrongful death by Patrick's family.</span>
Answer:
$9120
Explanation:
Using sum of years digit,
5+4+3+2+1=15
5/15*(72000-3600)=22800 for first year
4/15*68400 = 18240 for second year
Total depreciation before change of accounting policy = 22800+18240=41040
Net value of asset at start of 2018 = 68400-41040= 27360
Straight line depreciation for 2018 = 27360/3 = 9120
