What is the relationship between tools, operating targets, intermediate targets, and ultimate targets? The of monetary policy are those things over which the Fed has direct control such as open market operations. These have a direct effect on such as the Fed funds rate. These in turn will affect such as consumer confidence. It is these that then impact the Fed’s , which are prices, growth, and employment. Because the Fed cannot directly control its , the Fed must rely on adjusting its to try to achieve its .

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?