5 . Problems and Applications Q5 Consider the effects of inflation in an economy composed of only two people: Alex, a bean farmer, and Becky, a rice farmer. Alex and Becky both always consume equal amounts of rice and beans. In 2019 the price of beans was $1, and the price of rice was $4. Suppose that in 2020 the price of beans was $2 and the price of rice was $8. Inflation was 0.5% . Indicate whether Alex and Becky were better off, worse off, or unaffected by the changes in prices. Better Off Worse Off Unaffected Alex Becky Now suppose that in 2020 the price of beans was $2 and the price of rice was $4.80. In this case, inflation was 127% . Indicate whether Alex and Becky were bette

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?