Many states tax cigarette purchases. Suppose that smokers are unhappy about paying the extra charge for their cigarettes. If the state imposes the tax on the stores that sell the cigarettes rather than on smokers, it will: . a. cause some stores to go out of business.
b. lower prices for cigarette smokers because the tax would be on stores that sell the cigarettes rather than on smokers.
c. not make any difference to smokers because the tax incidence or burden of the tax is a function of the relative elasticities of supply and demand.
d. raise prices for cigarette smokers because the tax would be on stores and they will raise prices.

Transactions that affect earnings do not necessarily affect cash. identify the effect, if any, that each of the following transactions would have upon cash and net income. the first transaction has been completed as an example. (if an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15, cash net income (a) purchased $120 of supplies for cash. –$120 $0 (b) recorded an adjustment to record use of $35 of the above supplies. (c) made sales of $1,370, all on account. (d) received $700 from customers in payment of their accounts. (e) purchased equipment for cash, $2,450. (f) recorded depreciation of building for period used, $740. click if you would like to show work for this question: open show work