Hercula pool supplies's merchandise inventory data for the year ended december 31 comma 2019 comma follow: (click the icon to view the inventory data.) read the requirements requirement 1. assume that the ending merchandise inventory was accidentally overstated by $ 2 comma 200. what are the correct amounts for cost of goods sold and gross profit? cost of goods sold in 2019 would be $ . what is the correct amount of gross profit? gross profit in 2019 would be $ . requirement 2. how would the inventory error affect hercula pool supplies's cost of goods sold and gross profit for the year ended december 31, 2020, if the error is not corrected in 2019? cost of goods sold for 2020 would be by $ . how would the inventory error affect hercula pool supplies's gross profit for the year ended december 31, 2020, if the error is not corrected in 2019? gross profit for 2020 would be by $ .

3. saving two consumers, larry and jeff, have utility functions defined over the two periods of their lives: middle age (period zero) and retirement (period 1). they have the same income in period 0 of m dollars and they will not earn income in period 1. the interest rate they face is r. larry’s and jeff’s utility functions are as follow. = 0.5 + 0.5 and = 0.5 + 0.5 for each person is between zero and one and represents each consumer’s temporal discount econ 340: intermediate microeconomics. ben van kammen: purdue university. rate. a. write the budget constraint that applies to both jeff and larry in terms of consumption in each period and ), interest rate, and m. b. what is larry’s and what is jeff’s marginal rate of intertemporal substitution? c. what is the slope of the budget constraint? d. write each consumer’s condition for lifetime utility maximization. e. re-arrange the conditions from part (d) to solve for the ratio, . f. if > which consumer will save more of his middle age income? g. if > 1 1+ , in which period will larry consume more: = 0 or = 1?