A recent balance sheet for The Quaker Oats Company included the following accrued expenses as liabilities:

The net income for The Quaker Oats Company for the year was \($284,500,000\).

a. If the accruals had not been recorded at the end of the year, by how much would net income have been misstated for the fiscal year?

b. What is the percentage of the misstatement in (a) to the reported net income of \($284,500,000\)?

Transcribed Image Text:

Accrued payroll, benefits, bonus $131,400,000 Accrued advertising and merchandising Other accrued liabilities 125,600,000 383,500,000