Suppose Ginny is an avid reader and buys only mystery novels. Ginny deposits $3,000 in a bank account that pays an annual nominal interest rate of 5%. Assume this interest rate is fixed--that is, it won't change over time. At the time of her deposit, a mystery novel is priced at $10.00. (i.) Initially, the purchasing power of Ginny's $3,000 deposit is------mystery novels. (ii.) For each of the following annual inflation rates (0%, 5% and 8%), first determine the new price of a mystery novel, assuming it rises at the rate of inflation. Then determine the corresponding purchasing power of Ginny's deposit after one year for each inflation rate. Finally, calculate the value for the real interest rate at each of the given inflation rates. Hint: Round your answers down to the nearest mystery novel. For example, if you find that the deposit will cover 20.7 mystery novels, you would round the purchasing power down to 20 mystery novels under the assumption that Ginny will not buy seven-tenths of a mystery novel. (iii.) When the rate of inflation is equal to the interest rate on Ginny's deposit, the purchasing power of her deposit-----over the course of the year: (a) rises; (b) falls; (c) remains the same. The Helmut and King Corporation began 2013 with inventory of 8,000 units of its only product. The units cost $10.00 each. The company uses a periodic inventory system and the LIFO cost method. The following transactions occurred during 2013: 1. Purchased 40,000 additional units at a cost of $11.00 per unit. Terms of the purchases were 2/10, n30, and 80% of the purchases were paid for within the 10 day discount period. The company uses the gross method to record purchase discounts. The merchandise was purchased f.o.b. shipping point and freight charges of $1.00 per unit were paid by Helmut and King. 2. Sales for the year totalled 46,000 units at $20.00 per unit. 3. On December 28, 2013, Helmut and King purchased 5,000 additional units at $12.00 each (price includes freight of $1.00 per unit). The goods were shipped f.o.b. shipping point and arrived at Helmut and Kings warehouse on January 4, 2014. The terms of the purchase were n30. 4. 2,000 units were on hand at the end of 2013. Required: Determine ending inventory and cost of goods sold for 2013.