You will be examining the financial statements of Tim’s Coffee Shoppe to analyze operations.

In looking at the financial statements provided in the simulation:

• How should the existing error in the financial statements be corrected? Why?
• Why is it important to make sure that the statements are correct?

 

Tim's Coffee Shoppe Income Statement For the Year Ended December 31, 2017 Income earned. ......... $475,680 ........ Expenses: Salaries expense Rent expense Depreciation expens ......... Supplies expense Lease expense 125,000 14,400 .................. ......... .... ....... .... 12,116 .... 152,000 4,000 67,000 72,500 8.956 ... ........ ................. Tax expense ... Interest expense .... . Insurance expense .................... ........ Total expenses Net income *.**.. 455,972 $19,708 .... .....................