Question
Caesars, Inc. is a calendar-year corporation. Its financial statements for the years 2021 and 2020 contained errors as follows: 2021 2020 Ending inventory $3,000 overstated
Caesars, Inc. is a calendar-year corporation. Its financial statements for the years 2021 and 2020 contained errors as follows:
| 2021 | 2020 | |
|---|---|---|
| Ending inventory | $3,000 overstated | $8,000 overstated |
| Depreciation expense | $2,000 understated | $6,000 overstated |
Assume that no correcting entries were made at December 31, 2020, or December 31, 2021 and that no additional errors occurred in 2022. Ignoring income taxes, by how much will working capital at December 31, 2022 be overstated or understated?
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292
