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Use the Following Selected Data and Additional Information to Answer

question 155

Essay

Use the following selected data and additional information to answer the questions that follow:
$\begin{array}{lrr}\text { Balance Sheet Data }&2014&2013\\\text { Accounts receivable } & \$ 36,000 & \$ 42,000 \\\text { Inventories } & 28,000 & 25,000 \\\text { Accounts payable } & 31,000 & 35,000 \\\text { Salaries payable } & 2,000 & 1,000 \\\text { Equipment } & 60,000 & 40,000 \\\text { Accumulated depreciation } & 12,000 & 16,000 \\\text { Bonds payable } & 50,000 & 100,000 \\\text { Common stock } & 150,000 & 100,000 \\\text { Retained earnings } & 38,000 & 20,000\end{array}$ $Use the following selected data and additional information to answer the questions that follow: \begin{array}{lrr}\text { Balance Sheet Data }&2014&2013\\ \text { Accounts receivable } & \$ 36,000 & \$ 42,000 \\ \text { Inventories } & 28,000 & 25,000 \\ \text { Accounts payable } & 31,000 & 35,000 \\ \text { Salaries payable } & 2,000 & 1,000 \\ \text { Equipment } & 60,000 & 40,000 \\ \text { Accumulated depreciation } & 12,000 & 16,000 \\ \text { Bonds payable } & 50,000 & 100,000 \\ \text { Common stock } & 150,000 & 100,000 \\ \text { Retained earnings } & 38,000 & 20,000 \end{array} Additional information:$ Additional information:
$Use the following selected data and additional information to answer the questions that follow: \begin{array}{lrr}\text { Balance Sheet Data }&2014&2013\\ \text { Accounts receivable } & \$ 36,000 & \$ 42,000 \\ \text { Inventories } & 28,000 & 25,000 \\ \text { Accounts payable } & 31,000 & 35,000 \\ \text { Salaries payable } & 2,000 & 1,000 \\ \text { Equipment } & 60,000 & 40,000 \\ \text { Accumulated depreciation } & 12,000 & 16,000 \\ \text { Bonds payable } & 50,000 & 100,000 \\ \text { Common stock } & 150,000 & 100,000 \\ \text { Retained earnings } & 38,000 & 20,000 \end{array} Additional information:$ $Use the following selected data and additional information to answer the questions that follow: \begin{array}{lrr}\text { Balance Sheet Data }&2014&2013\\ \text { Accounts receivable } & \$ 36,000 & \$ 42,000 \\ \text { Inventories } & 28,000 & 25,000 \\ \text { Accounts payable } & 31,000 & 35,000 \\ \text { Salaries payable } & 2,000 & 1,000 \\ \text { Equipment } & 60,000 & 40,000 \\ \text { Accumulated depreciation } & 12,000 & 16,000 \\ \text { Bonds payable } & 50,000 & 100,000 \\ \text { Common stock } & 150,000 & 100,000 \\ \text { Retained earnings } & 38,000 & 20,000 \end{array} Additional information:$

Definitions:

Free Floating Exchange Rate System

A currency system where the value of a country's currency is determined by the supply and demand for the currency in the foreign exchange market, without direct government control.

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to more money flowing out of the country than coming in.

Billion

A numerical value equal to 1,000 million in the short scale and 1,000,000 million in the long scale.

Depreciates In Value

The process by which an asset loses value over time.