The profit and loss account of Innovative Products Limited for the years 2016 and 2017 is given
Question:
The profit and loss account of Innovative Products Limited for the years 2016 and 2017 is given below:
The management was surprised to note that though the sales have increased by 9%, the profit before tax has actually declined almost by 35%. While reviewing the numbers it was revealed that the closing stock for the year 2016 was overstated by ₹ 1,000,000. You are required to restate the Profit and loss statement for both the years.
Transcribed Image Text:
Particulars Sales Closing stock Total Expenses Opening stock Purchases Manufacturing and other expenses Total expenses Profit before tax (in Thousands) 2016 19,720 2,800 22,520 1,500 13,700 4,400 19,600 2,920 2017 21,500 3,200 24,700 2,800 14,400 5,600 22,800 1,900
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (2 reviews)
Corrected profit and loss statement Particulars Sales Cl...View the full answer
Answered By
Deepak Pal
Hi there! Are you looking for a committed, reliable, and enthusiastic tutor? Well, teaching and learning are more of a second nature to me, having been raised by parents who are both teachers. I have done plenty of studying and lots of learning on many exciting and challenging topics. All these experiences have influenced my decision to take on the teaching role in various capacities. As a tutor, I am looking forward to getting to understand your needs and helping you achieve your academic goals. I'm highly flexible and contactable. I am available to work on short notice since I only prefer to work with very small and select groups of students. Areas of interest: Business, accounting, Project management, sociology, technology, computers, English, linguistics, media, philosophy, political science, statistics, data science, Excel, psychology, art, history, health education, gender studies, cultural studies, ethics, religion. I am also decent with math(s) & Programming. If you have a project you think I can take on, please feel welcome to invite me, and I'm going to check it out!
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
The profit and loss statement of Ace Trading Limited for the years 2016 and 2017 is given below: While reviewing the numbers, it was revealed that the closing stock for the year 2016 was understated...
-
The Indian business and investor community received a shock on 7th January 2009 when Mr. Ramalinga Raju, CEO of Satyam Computer Limited (Satyam), by a letter to the board of directors admitted...
-
1. As friends of Anna you have been asked to assist her in the preparation of a recommendation. You are to prepare the following: 2. Write an executive summary to the CEO and the board supported by...
-
Ronnie owns 600 shares of a stock mutual fund. This year he received dividend distributions of 60 stock mutual fund shares ($ 40 per share) and long term capital gain distributions of 45 stock mutual...
-
Bluebird Manufacturing makes carrying cases for portable electronic devices. Its costing records yield the following information: Requirements 1. Which type of costing system is Bluebird using? What...
-
A tank level regulator control is shown in Figure AP4.1(a). It is desired to regulate the level h in response to a disturbance change q3. The block diagram shows small variable changes about the...
-
What is the probability that two of the same letter are showing? We are considering two special 6 -sided dice. Each face is labeled with a number and a letter: the first die has faces \(1 A, 1 B, 2...
-
StarGaze Company leased a truck for three months. Accounting guidance classifies the lease as an operating lease. StarGaze makes lease payments of $800 at the end of each month. What journal entry...
-
Corporate Income Tax A corporation's taxable income is taxed at the federal, state, and local levels. It is customary for an agency to deduct the taxes paid to the other agencies before computing the...
-
Sharda Limited uses periodic inventory system for accounting. The following data pertains to quarter ended 30th June 2017: The sales of the company during the quarter amounted to 2,700,000. The...
-
Please complete the income statement for the year 201617 based upon the information given: Particulars Sales Opening stock Purchases Closing stock Cost of goods sold Gross profit Operating expenses...
-
In theory, what would be the proper market index to use?
-
The following data (and annotations) are related to the June 2016 charges appearing in the work in process account for Sutter Companys first processing department: Sutter uses the FIFO method. Direct...
-
The following data and annotations are for the work in process account of the first of Crocker Companys four departments used in manufacturing its only product October of 2016. Assuming that Crocker...
-
The following data (and annotations) are for Sutter Companys processing department work in process account for the month of June 2016: Sutter uses the weighted average method. Materials are added at...
-
The following selected operating data are for Jackson Companys Blending Department for the month of April 2016. Tinting and packaging operations are carried out subsequently in other departments....
-
The following data (and annotations) are for the work in process account of the first of Crocker Companys four departments used in manufacturing its only product for October of 2016. Assuming that...
-
Revisit the data on quarterly profits for the oil and gas sector. Create three histograms, one with a class width of $1 billion, one with a class width of $1.5 billion, and one with a class width of...
-
Pedro Bourbone is the founder and owner of a highly successful small business and, over the past several years, has accumulated a significant amount of personal wealth. His portfolio of stocks and...
-
Some well-attended exhibits at art museums have included collections of automobiles, motorcycles, and photographs of rock stars. Are these appropriate subjects for exhibition in a nonprofit art...
-
In your opinion, should nonprofit organizations spend their time and other resources helping for-profit organization increase their profits?
-
According to your author, what issues should nonprofit boards of directors consider when deciding to participate in a partnership with a for-profit organizations.
-
Bristol Syrup Company Ltd (BSC) makes a unique syrup using cane sugar and local herbs. The syrup is sold in small bottles and is prized as a flavouring for drinks and for use in desserts. The bottles...
-
Casey Nelson is a divisional manager for Pigeon Company. His annual pay raises are largely determined by his divisions return on investment (ROI), which has been above 23% each of the last three...
-
Exercise 3-8 An employee in Manitoba has use of a company owned automobile for the entire 2024 year. The following information is available: Total cost of the vehicle: ???$29,000 plus 13% GST & RST ...
Study smarter with the SolutionInn App