Exercise 6 2 Farley Bains, an auditor with Nolls CPAs, is performing a review of Buttalo Company's Inventery account. Duttalo Company did not have a good year, and top management is under pressure to boost reported income. According to its records, the inventory balance at vear-end was $701,260. However, the following information was not considered when determining that amount. Prepare a schedule to determine the correct Inventory amount. (Show amounts that reduce Inventory with a negatilve sign or parenthesls e.g. -45 or parentheses e.g. (45).) Ending inventory as reported 1. Included in the company's count were goods with a cost of $223,550 that the campany is holding on consiqnment. The acods belong to Nader Corporation. 2. The physical count did not include goods purchased by Buffalo Company with a coct of 41,150 that were shipped FOB shipping point on December 29 and did not arrive at Buffalo Company's warehouse until January 3. 3- Included in the inventory account was $16,930 uf office supplies that Were stored in the warehouse and were to be used by the company's supervisors and mariagers during the 4. The curmpany received an order on December 29 Lhat was boxed and was sitting on the oading dock awaiting pick-up on December 31. The shipper picked up the goods on anuary 1 and delivered them on January 5. The shipping terms were FOB shipping point. The goods had a selling price of $42,600 and a cost ot $30,130. The goods were not ncluded in the count because they were sitting on the dock. 5. Included in the count was $52,200 of goods that were parts fer a machine that the company no longer made. Given the high-tech nature cf Buttalo Company's products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost, "since that is what we pald for them, after all. Correct iivenitory