Allen's Hardware Store prepared the following analysis of cost of goods sold for the previous three years: $\begin{array}{lrrc}& \underline{2015}& \underline{2016}& \underline{2017}\\ \text{ Beginning inventory 1/1 }& \$40,000& \$18,000& \$25,000\\ \text{Cost of goods purchased }& \underline{50,000}& \underline{55,000}& \underline{70,000}\\ \text{ Cost of goods available for sale }& 90,000& 73,000& 95,000\\ \text{ Ending inventory 12/31 }& \underline{18,000}& \underline{25,000}& \underline{40,000}\\ \text{Cost of goods sold }& \underline{\$72,000}& \underline{\$48,000}& \underline{\$55,000}\end{array}$

Net income for the years 2015 2016 and 2017 was $75000 $60000 and $57000 respectively. Since net income was consistently declining Mr. Baden hired a new accountant to investigate the cause(s) for the declines.
The accountant determined the following:
1. Purchases of $20000 were not recorded in 2015.
2. The 2015 December 31 inventory should have been $26000.
3. The 2016 ending inventory included inventory costing $8000 that was purchased FOB destination and in transit at year end.
4. The 2017 ending inventory did not include goods costing $4000 that were shipped on December 29 to Wilson Plumbing Company FOB shipping point. The goods were still in transit at the end of the year.
Instructions
Determine the correct net income for each year. (Show all computations.)

Clearwater Hampers is a small British company that sells luxury food and drink in various combinations in picnic hampers. Food and wine are seen as classic, fail-safe gifts in a market where present-buying is increasingly tricky. Corporate customers, both in the United Kingdom and abroad, are important to the business. Clearwater has had several orders for more than a quarter of a million dollars. The company's leading salesperson, Peter Austin, is preparing the approach he will use during his first sales call with the CEO of Diamonite, a company that specializes in designing, manufacturing, and installing aircraft interiors for executives and heads of state. What type of approach will Austin be using if he enters the CEO's office and says, "Good morning. I'm Peter Austin from Clearwater Hampers."

A) Situational
B) Introductory
C) Self-effacing
D) Neutral
E) Curiosity

Aggregate income equals:

A) the sum of income earned by all laborers in the world economy.
B) the sum of income earned by all workers in the private sector.
C) the sum of the income earned by all the resource suppliers in an economy.
D) the total income of all employees after payment of income tax.
E) the total income of all employees after purchases of necessities.

The business cycle refers to fluctuations in economic activity such as employment and production.

______________ is calculated as cost of goods sold divided by average inventory.

Forward-looking forecasts that turn out to be wrong can be protected against liability for securities fraud if they include "meaningful cautionary statements."

Refer to Exhibit 21-4.What is the amount of interest revenue that General should recognize on the lease for the year ended December 31, 2010? (Round the answer to the nearest dollar.

A) $21, 869
B) $22, 550
C) $25, 954
D) $26, 635

Hungh Company had the following transactions pertaining to short-term investments in equity securities.
Jan. 1 Purchased 1500 shares of Antuni Company stock for $9500 cash.
June 1 Received cash dividends of $.40 per share on Antuni Company stock.
Sept. 15 Sold 375 shares of Antuni Company stock for $2300 less brokerage fees of $100.
Dec. 1 Received cash dividends of $.80 per share on Antuni Company stock.
Instructions
(a) Journalize the transactions.
(b) Indicate the income statement effects of the transactions.