Compute the gross profit percentage for each year

Assignment Help Accounting Basics
Reference no: EM13872143

Partial income statements for Sherwood Company summarized for a four-year period show the following:

An audit revealed that in determining these amounts, the ending inventory for 2013 was over-stated by $ 20,000. The inventory balance on December 31, 2014, was accurately stated. The company uses a periodic inventory system.

Required:

1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.

2. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction, rounding to the nearest percentage. Do the results lend confidence to your corrected amounts? Explain.

Reference no: EM13872143

Questions Cloud

Require stead to ked your after-tax real yield : Several years ago, a Texas bank offered a thirty-year CD with an annual return indexed to inflation. The rate offered was the annual percentage increase in the CPI plus 4 percent. Show the after-tax real return you would earn, assuming that the infla..
What actions the dlbc should address avoiding or mitigating : what actions the DLBC should address avoiding or mitigating
All members participate and creatively present their ideas : All members are required to participate and to creatively present their ideas, reflections or critical commentary. Groups are expected to address the key themes and incorporate examples from lectures, class discussions, and assigned readings.
Considering four mutually exclusive public-works projects : Tempe is considering four mutually exclusive public-works projects. Their costs and benefits are presented in the table below. Each project has a useful life of 50 years and the MARR is 12% per year. Which of the projects, if any, should be selected?..
Compute the gross profit percentage for each year : Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. Compute the gross profit percentage for each year (a) before the correction and (b) after the correction, rounding to the nearest percentage. Do t..
Prepare journal entry on bostons books for debt restructure : Prepare the journal entry on Boston's books for the debt restructure. Prepare the journal entry on San Diego's books for the debt restructure.
Sarbanes-oxley act of 2002 : Evaluate what changes should be made to both the Sarbanes-Oxley Act of 2002 and other current laws in order to make them more effective in deterring companies from committing crimes.
Discuss the difference between book values and market values : Discuss the difference between book values and market values and explain which one is more important to the financial manager and why.
Build the web site for flyhigh : Build the web site for FlyHigh including the following content: Specific trip information travelers need to plan their ( costs, accommodations, options , and so on) and Information international customers will need ( passports , visas, vaccination..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Claiming a loss on the stock

My mother owned 808 shares of gm stock that she had accumulated over many years being a gm employee. Now that the company went bankrupt we would like to claim a loss on the stock but dont have any record of what she paid over the years.

  Net income calculated by using financial capital maintenence

On December 31, 2010, the net assets of Marino Manufacturing amounted to $40,000. Net income calculated by using the financial capital maintenance concept amounted to $12,000. During the year, additional common stock was issued for $8,000, and $5,..

  The human resources department cost is allocated on the

the dollar store has a human resources department and a janitorial department that provide service to three sales

  A store was rented for 550 per month a lease was signed for

a store was rented for 550 per month. a lease was signed for one year on march 1. rent for the first 3 months was paid

  Income statement effects of the transacton

(a) Journalize the transactions. (b) Indicate the income statement effects of the transacton.

  What should bronze corporation report

bronze corporation sold machinery for $27,000 on december 31, 2011. The machinery had been purchased on january 2, 2008 for $40,000 and had an adjusted basis of $21,000 at the date of the sale. For 2011, what should Bronze Corporation report?

  Assuming nonstatistical sampling is used evaluate the

sampling for attributes is often used to allow an auditor to reach a conclusion concerning a rate of occurrence in a

  Determine randolphs weighted average contribution margin

randolph company produces two fountain pen models. information about its products follows product a product b sales

  Dring 2012 nova inc made several treasury stock

problem 1 during 2012 nova inc. made several treasury stock transactions. for each of the following give the entrys

  What is the monthly payment

Monthly Payment for a $1,000 Loan Annual Interest Rat Length of Loan in Years 20 25 30 6.00 % $7.16 $6.44 $6.00 6.50% $7.46 $6.75 $6.32 You are applying for a $175,000.00 loan at an annual percentage rate of 6.5 % for 30 years . What is the monthl..

  In a recent year hart corp had net income of 140000

in a recent year hart corp. had net income of 140000 interest expense 30000 and tax expense 40000. what was hart corp

  When a parent uses the equity method throughout the year to

1.parrett corp. bought one hundred percent of jones inc. on january 1 2009 at a price in excess of the subsidiarys fair

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd