Prepare statement of cash flows using the indirect method the year 2017. libby inc. income statement for the year ended on december 31, 2017 sales $100,000 cost of goods sold $61,000 depreciation 5,000 loss on sale of land 1,000 supplies expense 8,000 salaries expense 10,000 income tax expense 3,000 total expense $88,000 net income 12,000 libby inc. balance sheet december 31 2017 2016 asset cash $44,000 $18,000 accounts receivable 27,000 29,000 inventory 30,000 36,000 land 50,000 65,000 equipment 60,000 37,000 buildings 100,000 0 less accumulated depreciation (35,000) (30,000) total assets 276,000 155,000 accounts payable $25,000 $22,000 salaries payable 800 1,000 notes payable, long term 138,000 48,000 common stock 80,000 60,000 retained earnings 32,200 24,000 total liab. and se. 276,000 155,000 additional information 1. bought equipment for cash, $23,000. 2. sold land costing $15,000 only for $14,000 with loss on sale of land $1,000 3. paid $10,000 on long term note payable. 4. issue new shares of common stock for $20,000. 5. declared and paid a $3,800 dividend in cash. 6. purchased a building by signing a notes payable for $100,000

The market for corn in country a is highly competitive. at the current market price of $5/bushel there is a shortage of 100,000 bushels of corn in this country. media reports claim that the price of corn will rise drastically in the near future. according to these reports, the neighboring country b had witnessed a similar situation recently. at the same price, the shortage in country b was also 100,000 bushels and eventually the equilibrium price in b went up to $10/bushel. both countries are known to have equal number of corn producers and the market supply of corn is identical at all prices. this, combined with the fact that consumers in the two countries also have similar tastes and preferences, led the media to conclude that the price of corn in country a would soon be as high as $10/bushel. the new equilibrium price turns out to be below $10/bushel, what inferences can be drawn?

Frolic corporation has budgeted sales and production over the next quarter as follows. the company has 4100 units of product on hand at july 1. 10% of the next months sales in units should be on hand at the end of each month. october sales are expected to be 72000 units. budgeted sales for september would be: july august september sales in units 41,500 53,500 ? production in units 45,700 53,800 58,150

For each of the following cases determine the ending balance in the inventory account. (hint: first, determine the total cost of inventory available for sale. next, subtract the cost of the inventory sold to arrive at the ending balance.)a. jill’s dress shop had a beginning balance in its inventory account of $40,000. during the accounting period jill’s purchased $75,000 of inventory, returned $5,000 of inventory, and obtained $750 of purchases discounts. jill’s incurred $1,000 of transportation-in cost and $600 of transportation-out cost. salaries of sales personnel amounted to $31,000. administrative expenses amounted to $35,600. cost of goods sold amounted to $82,300.b. ken’s bait shop had a beginning balance in its inventory account of $8,000. during the accounting period ken’s purchased $36,900 of inventory, obtained $1,200 of purchases allowances, and received $360 of purchases discounts. sales discounts amounted to $640. ken’s incurred $900 of transportation-in cost and $260 of transportation-out cost. selling and administrative cost amounted to $12,300. cost of goods sold amounted to $33,900.a& b. cost of goods avaliable for sale? ending inventory?