Ruby operates a hobby supply store. She maintains her books using the cash method. At the end of the year, her accountant computes her accrual basis income that is used on her tax return. For 2020, Ruby had cash receipts of $840,000, which included $100,000 collected on accounts receivable from 2019 sales. It also included the proceeds of a $50,000 bank loan. At the end of 2020, she had $175,000 in accounts receivable from customers, all from 2020 sales. Ruby paid cash for all of the purchases. The total amount she paid for merchandise in 2020 was $560,000. At the end of 2019, she had merchandise on hand with a cost of $45,000. At the end of 2020, the cost of merchandise on hand was $80,000.

1. Ruby's accrual basis gross receipts for 2020 are $ .

2. The cost of goods sold for 2020 under the accrual method is $ .

3. The gross profit from merchandise sales for 2020 under the accrual basis is $ .

Ruby

1. Ruby's accrual basis gross receipts for 2020 are $740,000.

2. The cost of goods sold for 2020 under the accrual method is $525,000.

3. The gross profit from merchandise sales for 2020 under the accrual basis is $340,000.

Explanation:

a) Data and Calculations:

2020 Cash receipts =        $840,000

2019 accounts receivable   (100,000)

Bank loan                              (50,000)

Receipts from customers $690,000

Bank loan                               50,000

Gross receipts                   $740,000

Receipts from customers $690,000

plus accounts receivable     175,000

Total sales for 2020         $865,000

Beginning inventory (2019) =    $45,000

Amount paid for purchases = $560,000

Ending inventory (2020) =        $80,000

Cost of goods sold =              $525,000

Total sales for 2020    $865,000

Cost of goods sold        525,000

Gross profit =               $340,000

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi

answer; by looking at total product,marginal product,and changes in both after changes in inputs