Suppose David has $2,000 in a bank account that pays 3% interest, but inflation rises to 5%.
Which of the following statements is true?
The real rate of return for the money invested in that bank account is negative 2%
The real rate of return for the money invested in that bank account is 2%
The real rate of return for the money invested in that bank account is 4%
The real rate of return for the money invested in that bank account is 5%

The gomez company, a merchandising firm, has budgeted its activity for december according to the following information: • sales at $500,000, all for cash. • merchandise inventory on november 30 was $250,000. • the cash balance at december 1 was $20,000. • selling and administrative expenses are budgeted at $50,000 for december and are paid for in cash. • budgeted depreciation for december is $30,000. • the planned merchandise inventory on december 31 is $260,000. • the cost of goods sold represents 75% of the selling price. • all purchases are paid for in cash. the budgeted cash disbursements for december are: