Question
Condensed income statements for Swift Corporation are shown below for two years. 2013 2014 Sales $75,000 $90,000 Cost of Goods Sold 45,000 54,000 Gross Profit
Condensed income statements for Swift Corporation are shown below for two years.
| 2013 | 2014 | ||||
| Sales | $75,000 | $90,000 | |||
| Cost of Goods Sold | 45,000 | 54,000 | |||
| Gross Profit | $30,000 | $36,000 | |||
| Operating Expense | 15,000 | 15,000 | |||
| Net Income | $15,000 | $21,000 |
Compute the corrected net income for 2013 and 2014 assuming that the inventory as of the end of 2013 was mistakenly understated by $7,000.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
14th edition
1285867971, 978-1305480742, 1305480740, 978-0357686393, 978-1285867977
