The price index in year 2 is 158.7 (option a).
<h3>What is the price index?</h3>
Price index is used to measure how price change over a period of time. Price index is used to measure inflation. An example of a price index is the consumer price index. The consumer price index measures changes in the price of a basket of goods.
Price index in year 2 = ( 1 + inflation rate) x price index in year 1
(1.24) x 128 = 158.7
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Answer: (a) $295 million
(b) $326 million
Explanation:
Given that,
Sales = $900 million during 2016
Cash = $871 million
Cost of goods sold = $280 million
Expenses for the year totaled = $325 million
Paid for Inventory = $375 million
Paid for everything else = $285 million
Beginning cash = $115 million
(a) Net Income = Sales - Cost of goods sold - Expenses for the year totaled
= $900 - $280 - $325
= $295 million
(b) Carter's cash balance at the end of 2016:
= Cash + Beginning cash - Paid for Inventory - Paid for everything else
= $871 + $115 - $375 - $285
= $326 million
The nations selling the gasoline would be in trouble. They would earn less money and the possibility of a depression like the one the US had under Hoover and FDR would occur.
Answer:
The adjusting entry is as follows;
July 31
Rent Expense Debit $ 3,280
Prepaid Rent Credit $ 3,280
To record rent expense for the month of July
Explanation:
Prepaid rent payment $ 19,680
Period of payment 6 months
Period of benefit 1 month
Rent expense for 1 month I.e July is computed as
$ 19,680/6 months * 1 month $ 3,280