1. XYZ Company overstated Year 1 ending inventory by $300. How would this affect Year 1 net income, owners equity and total assets (overstate, understate, no effect)?

Circle the correct answer

1. Net income OVERSTATED, UNDERSTATED, NO EFFECT
2. Owners equity OVERSTATED, UNDERSTATED, NO EFFECT

c. Total assets - OVERSTATED, UNDERSTATED, NO EFFECT

It is January 1, 2019. Find the present value of a $100 perpetuity when the first payment is at the end of year 2019. The discount rate is 6%.

It is January 1, 2019. Find the present value of a $100 perpetuity when the first payment is at the end of year 2020. The discount rate is 6%.

It is January 1, 2019. Find the present value of a $100 growing perpetuity when the first payment is at the end of year 2019. The discount rate is 6%. The growth rate is 2%.