Presented Below Is a Statement of Cash Flows for Plum

question 21

Essay

Presented below is a statement of cash flows for Plum, Inc., for the year ended December 31, 2017. Also shown is a partially completed comparative balance sheet as of December 31, 2017 and 2016. Required:
(a.) Complete the December 31, 2017 and 2016 balance sheets.(b.) Prepare a Statement of Changes in Retained Earnings for the year ended December 31, 2017.

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Definitions:

Producing Purses

Involves the manufacturing and crafting of handbags and purses, often focusing on aspects like design, material quality, and functionality.

Long-Run Minimum Cost

The lowest cost at which a firm can produce any given level of output in the long run when all inputs are variable.

Average Total Cost Curve

A graphical representation of the total cost (fixed plus variable) per unit of output produced, plotted against different levels of output.

Short-Run

A period in which at least one factor of production is fixed, and firms can only partially adjust their output levels.