1.       Describe how the financial statements (the income statement, statement of retained earnings, balance sheet and statement of cash flows) are interrelated. Provide at least two examples.

If you were an investor, would you place more emphasis on any one particular financial statement? Explain your answer.

2.       During a period of inflation (increasing costs of goods), which inventory cost flow method would provide the highest ending inventory balance? How would this affect the net income of the company? Explain why it would, or would not, be ethical to select the cost flow method that reports the highest net income?


1.    In relation to bonds, in what type of economic circumstances would a call feature be beneficial to a firm? In what ways does it increase risk for the bondholder?

Principles Macro Class-200 words

1.     Explain what determines the shape and position of the short-run aggregate supply curve.

Business Law class- 200 words

1.      Charles was a farmer who farmed 600 acres of land. Charles entered into a hand-shake contract with 4H Grain Company. The agreement called for Charles to sell 20,000 bushels of corn to 4H in October, when Charles’ corn crop would be harvested. The agreed price was to be $1.00 per bushel or $20,000.  That amount was to be paid to Charles when he delivered the corn to 4H. Unfortunately, there was a rain storm during the summer that damaged Charles’ corn crop, and part of the corn crop failed. Because of that failure, Charles was only able to offer 9,000 bushels of corn to 4H in October. 4H refused the offer of part of the amount that was to be delivered by Charles and sued Charles for breach of contract to deliver corn. There is nothing in the contract that addresses this situation.

Assume that the facts given are admitted and not in dispute.  Is there anything that Charles can do to avoid breaching the contract?  Does Charles have any defenses to breach of this contract?  Who should win?  Why?