Business
Suppose you entered a contract to buy your friend's iPad. Without your knowledge, it was malfunctioning at the time you bought it, and it died soon after you started using it. Your friend had recently removed a large number of applications from the iPad that were not working. Although he honestly thought the problem was with the applications and not the iPad itself, he failed to tell you about the problem. You reasonably concluded, based on your inspection of all of the current applications on the iPad, that it was functioning properly. Can you rescind the contract to buy the iPad?a. Yes, due to fraud.b. Yes, due to innocent misrepresentation.c. Yes, due to mutual mistake.d. Yes, due to undue influence.e. No, the latent malfunction was not material, because the iPad was functioning when you bought it.
Use the following information to prepare a multistep income statement and a balance sheet for Sherman Equipment Co. for 2016. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.) (Balance Sheet only: Items to be deducted must be indicated with a minus sign.)Salaries Expense $ 69,000 Operating Expenses $ 62,000 Common Stock 100,000 Cash Flow from Investing Activities 78,400 Notes Receivable 24,000 Prepaid Rent 12,500 (short term) Allowance for Doubtful Accounts 7,800 Land 40,000 Uncollectible Accounts Expense 8,100 Cash 48,100 Supplies 1,200 Inventory 98,300 Interest Revenue 5,400 Accounts Payable 46,000 Sales Revenue 320,000 Salaries Payable 12,000 Dividends 3,500 Cost of Goods Sold 148,000 Interest Receivable (short term) 1,500 Accounts Receivable 56,000 Beginning Retained Earnings 81,000