Which type of financial statement should you look at if you want to see a company's profits and losses over a specific period of

Most economists believe that in the long run, changes in the money supply Group of answer choices affect nominal but not real va

Ymorist [56]

Answer:

affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory.

Explanation:

This idea is held by classical economists (not by most economists) since they believe in the quantitative theory of money:

MV = PQ

M = quantity of money
V = velocity of money
P = price level
Q = quantity of goods

Classical theory was abandoned 90 years ago (according to classical theory, recessions were not possible and couldn't exist, but then the Great Depression came and the impossible became true). Neo-classical or monetarists appeared in the 1960s, and lately, neo-neo-classical appeared with George W. Bush. The problem with the quantitative theory is that it needs the following things to be true in order to hold, and empirical evidence over the last 90 years showed that none of them are true:

the velocity of money has to be constant (AND IT IS NOT CONSTANT)
real output is independent on money supply (NOT TRUE)
causation goes from money to prices (MODERN ECONOMISTS BELIEVE IT IS THE OTHER WAY)

5 0

3 years ago

The income statement for Splish Traveler Company shows cost of goods sold $307,000 and operating expenses (exclusive of deprecia

enyata [817]

Answer:

a. $349,700

b. $209,900

Explanation:

The computation is shown below:

Before computing the cash payment made to supplier first we have to find out the purchase amount which is shown below:

(a) Change in Finished goods + purchase = Cost of goods sold

-$25,800 + purchases = $307,000

So, the purchase is $332,800

Now

Cash paid to supplier is

= $332,800 + $16,900

= $349,700

And,

(b) Cash paid for operating expenses is

= $229,000 - $8,000 - $11,100

= $209,900

5 0

3 years ago

On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances:

Anna11 [10]

Answer:

TNT Fireworks

a. Multiple-step Income Statement for the period ended January 31, 2021:

Sales revenue $220,000

Cost of goods sold 115,000

Gross profit $105,000

Interest Revenue 50

Expenses:

Depreciation exp. 3,600

Salaries expense 62,400

Utilities expense 16,500

Bad debt expense 5,900 $88,400

Income before tax $16,650

Income taxes exp 9,000

Net income $7,650

Beginning Retained Earnings 50,000

Ending Retained earnings $57,650

b. Classified Balance Sheet as of January 31, 2021:

Assets

Current assets:

Cash $5,400

Accounts Receivable 223,000

Allowance for

Uncollectible Accounts (8,100)

Interest Receivable 50

Inventory 4,200 $224,550

Long-term assets

Notes Receivable (5%,

due in 2 years) 12,000

Land 155,000

Equipment 19,500

Depreciation (3,600) $182,900

Total assets $407,450

Liabilities and equity

Current liabilities:

Accounts Payable $88,200

Salaries payable 32,600

Income taxes payable 9,000

Total liabilities $129,800

Equity:

Common Stock $220,000

Retained Earnings 57,650

Total equity $277,650

Total liabilities and equity $407,450

c. Closing Entries:

Accounts Debit Credit

Sales revenue $220,000

Interest Revenue 50

Income summary $220,050

To close sales and interest revenue to the income summary.

Income Summary $212,400

Cost of goods sold $115,000

Depreciation exp. 3,600

Salaries expense 62,400

Utilities expense 16,500

Bad debt expense 5,900

Income taxes exp 9,000

To close cost of goods sold and expenses to the income summary.

Income summary $7,650

Retained earnings $7,650

To close the net income to the retained earnings.

Explanation:

a) Data and Calculations:

Account Balances:

Accounts Debit Credit

Cash $58,700

Accounts Receivable 25,000

Allowance for

Uncollectible Accounts $2,200

Inventory 36,300

Notes Receivable (5%,

due in 2 years) 12,000

Land 155,000

Accounts Payable 14,800

Common Stock 220,000

Retained Earnings 50,000

Totals $287,000 $287,000

Analysis of Transactions:

January 1 Equipment $19,500 Cash $19,500

January 4 Accounts payable, $9,500 Cash $9,500

January 8 Inventory $82,900 Accounts payable $82,900

January 15 Cash $22,000 Accounts receivable, $22,000

January 19 Salaries expense $29,800 Cash $29,800

January 28 Utilities expense, $16,500 Cash $16,500

January 30 Accounts receivable $220,000 Sales revenue $220,000

Cost goods sold $115,000 Inventory $115,000

Accounts Debit Credit

Cash $58,700 - 19,500 -9,500 +22,000 - 29,800 - 16,500

= $5,400

Accounts Receivable 25,000 - 22,000 + 220,000 = 223,000

Interest Receivable 50

Allowance for

Uncollectible Accounts $2,200 + 5,900 = 8,100

Inventory 36,300 + 82,900 - 115,000 = 4,200

Notes Receivable (5%,

due in 2 years) 12,000

Land 155,000

Equipment 19,500

Accumulated depreciation 3,600

Accounts Payable 14,800 - 9,500 + 82,900 = 88,200

Salaries payable 32,600

Income Taxes Payable 9,000

Common Stock 220,000

Retained Earnings 50,000

Sales revenue 220,000

Interest Revenue 50

Cost of goods sold 115,000

Depreciation exp. 3,600

Salaries expense 29,800 + 32,600 = 62,400

Utilities expense 16,500

Bad debt expense 5,900

Income Taxes 9,000

Totals $287,000 $287,000

Adjusting entries:

Depreciation expenses $3,600 Accumulated depreciation $3,600

Allowance for Uncollectible Accounts = $1,500

Allowance for uncollectible accounts = $6,600 ($220,000 * 3%)

Total allowance for uncollectible = $8,100 ($1,500 + $6,600)

Bad debts expense $ 5,900 Allowance for Uncollectible $5,900

Interest Receivable $50 Interest Revenue = $50 ($12,000 * 5% * 1/12)

Salaries Expense $32,600 Salaries payable $32,600

Income Taxes $9,000 Income Taxes Payable $9,000

Adjusted Trial Balance

As of January 31, 2021

Accounts Debit Credit

Cash $5,400

Accounts Receivable 223,000

Interest Receivable 50

Allowance for

Uncollectible Accounts $8,100

Inventory 4,200

Notes Receivable (5%,

due in 2 years) 12,000

Land 155,000

Equipment 19,500

Accumulated depreciation 3,600

Accounts Payable 88,200

Salaries payable 32,600

Income taxes payable 9,000

Common Stock 220,000

Retained Earnings 50,000

Sales revenue 220,000

Interest Revenue 50

Cost of goods sold 115,000

Depreciation exp. 3,600

Salaries expense 62,400

Utilities expense 16,500

Bad debt expense 5,900

Income taxes exp 9,000

Totals $631,550 $631,550

8 0

3 years ago

Saturn Systems, an electronic goods manufacturer, sells its LED bulbs to Shockwave Enterprise, which in turn sells those bulbs t

AVprozaik [17]

Answer:

C. retailer

Explanation:

A retailer is a business entity that buys goods from manufacturers or wholesalers and sells them to the end-users. A retailer is, therefore, a middleman who helps customers acquire products from manufacturers.

There are several types of retailers classified according to their size and nature of business. Departmental stores are the largest retailers. They stock a wide range of products from electronics, jewelry, food items, furniture, clothing, to books, all under one roof. Other retailers include supermarkets, drugstores, restaurants, convenience stores, and discount stores.

Retailers make profits by buying goods at a wholesale or factory price and selling them at a higher retail price.

4 0

3 years ago

Account junral entire of Rai account was settled by cash of rs 24000<br>

kifflom [539]

Answer:

cash A/C•••••••••••Dr.

To,Rai´s A/C

7 0

3 years ago

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