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Question - Pluto Home Finders, Inc. (PHF), a dog placement service, operates in the Midwestern United States. During 2015 the company earned $145,000 in revenue by providing services to customers. However, it collected only $120,000 of the revenue in cash. PHF expects to collect the remaining $25,000 in 2016.
In addition, PHF incurred $80,000 of expenses. However, by the end of 2015, PHF had paid only $75,000 of the cash owed for expenses because it had not yet paid $5,000 to employees who had worked during 2015 but had not been paid by the end of the year. PHF expects to pay the $5,000 in cash to the employees during 2016.
Based on this information alone, what amount of net income should PHF report on its 2015 financial statements?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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