Pettit Company reports net income of $90,000 in 2015. However, ending inventory was understated $7,000. What is

Question:

Pettit Company reports net income of $90,000 in 2015. However, was understated $7,000. What is the correct net income for 2015? What effect, if any, will this error have on total assets as reported in the at December 31, 2015?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...