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Arch Associates Reports the Following Comparative Balance Sheets and Income

question 132

Multiple Choice

Arch Associates reports the following comparative balance sheets and income statement information.
$\begin{array}{l}\hline \quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\text { Arch Associates } \\\hline\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad \text { Comparative Balance Sheets } \\\begin{array}{|l}\hline \\\hline \text { Cash}\\\hline \text { Accounts receivable}\\\hline \text { Prepaid insurance}\\ \hline \text { Inventory }\\\hline \text { Property, plant and equipment}\\\hline \text { Total assets}\\\hline \\\hline \text { Accounts payable}\\\hline \text { Salaries payable}\\\hline \text { Long term notes payable}\\\hline \text { Stockholders' equity}\\\hline \text { Total liabilities and equity}\\\hline \end{array}\begin{array}{|c|}\hline 12 / 31 / 2013\\\hline \$ 12,000 \\\hline 4,000 \\\hline 10,000 \\\hline 6,000 \\\hline 12,000 \\\hline \$ 44,000 \\\hline & & \\\hline \$ 8,000 \\\hline 10,000 \\\hline 8,000 \\\hline 18,000 \\\hline 44,000 \\\hline \end{array}\begin{array}{c|}\hline 12 / 31 / 2014 \\\hline 22,000 \\\hline 8,000 \\\hline 8,000 \\\hline 2,000 \\\hline 10,000 \\\hline 50,000 \\ \hline \\\hline 12,000 \\\hline 4,000 \\\hline 6,000 \\\hline 28,000 \\ \hline 50,000 \\\hline \end{array}\end{array}$ $\quad$ $\quad$ $\quad$ $\quad$ $\text { Income Statement }$
$\quad$ $\quad$ $\quad$ $\text { Year Ended 12/31/14 }$
$\begin{array}{|l|ll|}\hline\text {Revenue} &\$ & 70,000 \\\hline \text {Cost of goods sold} && 40,000 \\\hline \text {Gross margin} && 30,000 \\\hline \text {Operating expense} && \underline { 20,000} \\\hline \text {Net income} &\$ & \underline { 10,000}\\\hline\end{array}$ All inventory purchases are made on account.The amount of cash paid for inventory purchases during 2014 Year 2 was:

Understand the legal remedies and consequences of contract disputes arising from mistakes or misrepresentations.

Gain knowledge on how undue influence and duress affect the legitimacy of consensual agreements.

Grasp the role and importance of consideration in the validation of contracts and contract modifications.

Recognize the significance of distinguishing between factual and value mistakes in contract law across different jurisdictions.

Definitions:

Human-Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Social-Capital

The interconnected web of interactions among individuals residing and operating within a specific community, facilitating the smooth functioning of that society.

Income Inequality

The uneven distribution of income within a population, leading to financial disparity among its members.

Official Definition

An explicitly stated and widely accepted explanation or meaning of a word or concept, often provided by a reputable or governing authority.