Selected Items from the Balance Sheet and Income Statement Are

question 10

Essay

Selected items from the balance sheet and income statement are shown below for the Carswell Corporation for 2017 and 2016.Calculate the amount of the change and the percentage change for each item.
$\begin{array}{lll}&2017&2016\\\text { Cash } & \$ 130,000 & \$ 100,000 \\\text { Accounts receivable } & 100,000 & 125,000 \\\text { Merchandise inventory } & 65,000 & 85,000 \\\text { Accounts payable } & 62,500 & 50,000 \\\text { Sales } & 150,000 & 135,000 \\\text { Cost of goods sold } & 73,500 & 67,500\end{array}$

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Definitions:

Escalation of Commitment

A pattern of behavior in which individuals or groups continue to invest in a decision despite evidence of its ineffectiveness, often due to cognitive biases.

Intuition

A cognitive process that enables people to make decisions without the use of analytical reasoning.

Escalation of Commitment

A behavioral phenomenon where an individual or group continues to invest in a decision despite evidence of its failure, often because of the resources already committed.

Support

Support refers to the assistance or backing provided by individuals or groups, intended to aid someone else's efforts or initiatives.