Beasley, Inc., reports the following amounts in its December 31, 2021, income statement. Sales revenue $ 340,000 Income tax expense $ 39,000 Interest expense 10,000 Cost of goods sold 129,000 Salaries expense 32,000 Advertising expense 24,000 Utilities expense 42,000 Prepare a multiple-step income statement.

Beasley, Inc.

Beasley, Inc.

Income Statement

For the year ended December 31, 2021:

Sales revenue                    $ 340,000

Cost of goods sold                129,000

Gross profit                          $211,000

Operating Expenses:

Salaries expense                   32,000

Advertising expense             24,000

Utilities expense                   42,000

Total operating expenses $98,000

Operating income (EBIT)  $113,000

Interest expense                  10,000

Income before taxes       $103,000

Income tax expense        $ 39,000

Net income                       $64,000

Explanation:

a) Data and Calculations:

Beasley, Inc.

Income Statement

For the year ended December 31, 2021:

Sales revenue $ 340,000

Cost of goods sold 129,000

Salaries expense 32,000

Advertising expense 24,000

Utilities expense 42,000

Interest expense 10,000

Income tax expense $ 39,000

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.