Presented below is information for ivanhoe company for the month of january 2017. cost of goods sold $221,000 rent expense $33,500 freight-out 9,700 sales discounts 8,600 insurance expense 14,600 sales returns and allowances 20,000 salaries and wages expense 63,400 sales revenue 392,500 income tax expense 4,900 other comprehensive income (net of $400 tax) 2,000 collapse question part (a) prepare an income statement using the multi-step format. ivanhoe company income statement.

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?