6D Slipshod Ltd has discovered that it has estimated insufficient warranty expenses, because more customers are returning
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6D Slipshod Ltd has discovered that it has estimated insufficient warranty expenses, because more customers are returning products for repair than had been expected. The company decides to recognise an additional $130 000 in noncurrent warranty liability, and, therefore, in corresponding expenses. The company’s income tax rate is 35 per cent.
What will this do to the current year’s net profit? To cash from operations? To the current ratio?
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Related Book For
Fundamentals Of Accounting And Financial Management
ISBN: 9780170454797
8th Edition
Authors: Professor Ken Trotman, Kerry Humphreys
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