Question
During its first four years of operation, Teal Co. reported the following net income. 2015 $89,100 2016 142,300 2017 166,300 2018 241,000 Teal is undergoing
During its first four years of operation, Teal Co. reported the following net income.
2015 | $89,100 | |
2016 | 142,300 | |
2017 | 166,300 | |
2018 | 241,000 |
Teal is undergoing its first financial statement audit. The external auditors noted the following: 1. In early 2018, Teal Co. changed its estimate of bad debt expense from 2.5% of sales to 2.0% of sales. The company therefore adjusted its net income upward for 2015 through 2017 by the following amounts.
2015 | $2,200 | |
2016 | 4,100 | |
2017 | 4,800 |
2. The auditor discovered that ending inventory was misstated as indicated below for the years ending 2015 and 2017:
Year | Amount of misstatement | Direction of misstatement | ||
---|---|---|---|---|
2015 | $19,100 | Overstatement | ||
2017 | $14,500 | Understatement |
Calculate net income to be reported in Teals comparative income statements for the years 2015 to 2018.
Teal Co. Comparative Income Statements For the Years 2015 through 2018 | ||||||||
---|---|---|---|---|---|---|---|---|
2015 | 2016 | 2017 | 2018 | |||||
Net Income | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount | $enter a dollar amount |
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