Fennick Company reports net income of $92,000 in 2022. However, ending inventory was understated by $7,000. What

Question:

Fennick Company reports net income of $92,000 in 2022. However, ending inventory was understated by $7,000. What is the correct net income for 2022? What effect, if any, will this error have on total assets as reported in the balance sheet at December 31, 2022?

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...

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