Acme corporation uses the calendar year as their fiscal year for reporting purposes. acme corporation is owned 100% by jesse smith. jesse smith is quite wealthy - he has over $3 million in a personal savings account which is currently earning 2 one hundredths of 1% interest (or .0002 rate resulting in $600 per year). he also has many other investments. acme corporation has $300,000 of current assets. acme has accounts payable of $40,000 and various payroll liabilities totaling $109,000. acme also has a note payable in the amount of $800,000. there are no other liabilities. interest has been paid every year when due on december 31. the note payable is due in $200,000 installments on june 30 of each year for the next 4 years. the current interest rate on the note is 4%. however, according to the loan terms, if acme's current ratio falls below 2, the interest rate will automatically increase to 7%. since the note is due in installments over the next 4 years, management is presenting the note on the balance sheet as a long term liability. is acme's management reporting their balance sheet appropriately? what recommendations do you have for management? how do these recommendations impact the current ratio?

answer///parietal;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.