Selected data and additional information from the company's records are presented below:
Balance Sheet Data Cash Accounts receivable Inventories Accounts payable Salaries payable Equipment Accumulated depreciation Bonds payable Common shares Retained earnings Year 2 $235,000$120,00056,00038,00010,000110,00028,000100,000300,00076,000 Year 1 246,000$150,00050,00070,0005,00070,00032,000200,000200,00040,000
Income Statement Data Net sales Cost of goods sold Operating expenses (excluding depreciation expense) Net income (including depreciation expense and gain) Gain on sale of equipment Year 2 $920,000700,000160,00056,0004,000
Additional information:
1. Equpment with a cost of $30,000 and abogk value of \$18,000 was sald for $22,000 during Year 2.
2. Common shares were issued to retire bonds payable during Year 2.
3. The only items affecting retained earnings in Year 2 were net income and dividends declared and paid.
-Refer to Mary Kay Cosmetics.What is the amount paid for operating expenses during Year 2?
Differentiate between positive and normative economic statements.
Comprehend the concept of marginal analysis in economic decision-making.
Recognize the significance of the ceteris paribus assumption in economic theories.
Identify the characteristics of economic theories, including their predictive abilities and the role of information in decision-making.
Definitions:
Values
The importance, worth, or usefulness of something, often influencing individuals' choices and behaviors.
Sold
The past tense of sell, indicating the transfer of goods or services in exchange for money or other compensation.
Reservation Price
The maximum price that a buyer is willing to pay for a good or service, beyond which the buyer will choose not to purchase.
English Auction
A type of auction where participants bid openly against one another, with each bid higher than the previous bid, and the highest bidder wins.