I believe it s3 but not quite sure
Answer:
The journal entry to record the write down is:
Dr Cost of goods sold 1,000
Cr Inventory 1,000
Since cost of goods sold increases, then net income (income statement) will decrease. A decrease in net income will also result in lower retained earnings (balance sheet).
Answer: -14.3%
Explanation:
The Value of money can be calculated by the formula;
Value of money = Amount of money / Price Level
Orginally the value of money was 1, the amount was 1.2 and so was the price level.
Price level has changed so the new value is;
= 1.2/1.4
= $0.857
The change therefore is;
=( 0.857 - 1) / 1
= -14.3%
Answer:
a.
P = $3.50 per gallon
b.
Equilibrium Quantity = 165 million gallons
Explanation:
a.
The equilibrium price is the price at which Quantity demanded equals quantity supplied. To calculate the equilibrium price using the given equations for demand and supply, we need to equate both equations.
<u>Equilibrium Price (P) calculation</u>
QD = QS
200 - 10P = -10 + 50P
200 + 10 = 50P + 10P
210 = 60P
P = 210 / 60
P = $3.50 per gallon
b.
The equilibrium quantity can be calculated by inserting the value of Price (P) in any of the equation for demand or supply.
Equilibrium Quantity = 200 - 10(3.50)
Equilibrium Quantity = 200 - 35
Equilibrium Quantity = 165 million gallons
