Worked problem part 1,2,3 a rise in the price of a smoothie from $2 to $3 results in a decrease in the quantity of smoothies demanded from 220 million to 180 million a day; and at today's price of a muffin, $1.50, the quantity of muffins demanded increases from 80 million to 100 million a day. 1. calculate the percentage change in the price of a smoothie and the percentage change in the quantity demanded of smoothies. hint: use the average price and average quantity to calculate the percentage changes. the price of a smoothie changes by 25 percent and the quantity demanded of smoothies changes by 10 percent.

Powell company began the 2018 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retained earnings. during 2018, powell experienced the following events: sold merchandise costing $58,000 for $99,500 on account to prentise furniture store. delivered the goods to prentise under terms fob destination. freight costs were $900 cash. received returned goods from prentise. the goods cost powell $4,000 and were sold to prentise for $5,900. granted prentise a $3,000 allowance for damaged goods that prentise agreed to keep. collected partial payment of $81,000 cash from accounts receivable. required record the events in a statements model shown below. prepare an income statement, a balance sheet, and a statement of cash flows. why would prentise agree to keep the damaged goods?