Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Here's the income statement from a small company for Q2 2022 (dollar values in thousands of dollars): Q2 2022 Q2 2021 Revenue $314,304 $177,766 Operating

Here's the income statement from a small company for Q2 2022 (dollar values in thousands of dollars):

Q2 2022 Q2 2021
Revenue $314,304 $177,766
Operating expenses:
-Production $98,979 $273,940
-Sales & marketing $546,465 $555,563
-Development $611,177 $90,312
-General & administrative $519,650 $292,687

Suppose this is the unaudited income statement. Later, the audited income statement indicates that production expenses were actually 8 percent larger than originally reported. No other estimates changed. By how much, in thousands of dollars, would operating income fall in Q2 2022 as a result of this revision? Please express your answer as a whole number (i.e., 300 for $300,000). Also, since I've specified it's a fall in operating income, you can skip putting in the negative sign here.

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

Hospitality Financial Accounting

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

2nd Edition

9780470598092, 470083603, 978-0470083604

More Books

Students also viewed these Accounting questions