Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

131UDU TUO,UVU al UUU Cost of Goods Sold Gross Profit 78,000 62.000 16,000 56.000 40.000 81,000 41,000 Operating Expenses $ 16,000 $ 40,000 Net Income

image text in transcribed
image text in transcribed
image text in transcribed
131UDU TUO,UVU al UUU Cost of Goods Sold Gross Profit 78,000 62.000 16,000 56.000 40.000 81,000 41,000 Operating Expenses $ 16,000 $ 40,000 Net Income Requirement 2. State whether each year's net income_before your correctionsis understated or overstated, and indicate the amount of the understatement or overstatemen Year: Prior to correction net income was 2019 overstated by $ 9,000 2018 overstated by 3 8,000 2017 understated by $ 8.000 Requirement 3. Compute the inventory turnover and days' sales in inventory using the corrected income statement for the three years. (Round all numbers to two decimals.) Select the labels and enter the amounts to compute inventory tumover for each year. (Round your answers to two decimal places, X.XX.) Net income Average Merchandise Inventory Inventory turnover 2019 times 2018 times 2017 times Choose from any list or enter any number in the input fields and then click Check Answer Clear 1 part remaining Type here to search O ei De Score: 1.09 of 2 pts P6-31A (similar to) Waterlily Carpets's books show the following data. (Click the icon to view the income statements.) In early 2020, auditors found that the ending merchandise inventory for 2017 was understated by $8,000 and that the ending merchandise inventory Read the requirements Ending Merchandise Ending Merchandise Inventory Overstated Inventory Understated by $9,000 Correct by $8,000 Net Sales Revenue $ 209,000 $ 162,000 $ 168,000 Cost of Goods Sold: Beginning Merchandise Inventory $ 24,000 $ 38,000 $ 47,000 Net Cost of Purchases 130,000 92.000 78,000 Cost of Goods Available for Sale 154,000 130,000 125,000 Less: Ending Merchandise Inventory 23,000 24,000 38.000 131,000 Cost of Goods Sold 108,000 87.000 Gross Profit 78,000 58,000 81,000 Operating Expenses 62.000 40.000 41,000 S Net Income 16,000 $ 16.000 S 40,000 Requirement 2. State whether each year's net income-before your corrections is understated or overstated, and indicate the amount of the unde Year 2010 Prior to correction net income was overstated by S 9,000 overstated by S 8.000 understated by $ 8.000 2018 2017 Data Table 2017 2019 2018 $ 168,000 $ 162.000 $ 209,000 $ $ 24,000 130,000 $ 30,000 92,000 47,000 78,000 overstatement 154000 32.000 122.000 24.000 125,000 30.000 Net Sales Revenue Cost of Goods Sold: Beginning Merchandise Inventory Net Cost of Purchases Cost of Goods Available for Sale Less: Ending Merchandise Inventory Cost of Goods Sold Gross Profit Operating Expenses Net Income 95,000 122.000 98,000 87,000 82.000 84,000 40.000 73.000 41,000 32,000 $ 24,000 decimals.) 25,000 Print Done Clear All

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

3rd Edition

0471372668, 978-0471372660

More Books

Students also viewed these Accounting questions