Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Effects of inventory errors Following are condensed income statements for Uncle Bill's Home Improvement Center for the years ended December 31, 2014, and 2013:
2014
2013
Sales
$811,800
$785,400
Cost of goods sold
(606,900)
(540,600)
Gross pro?t
$204,900
$244,800
Operating expenses
(155,550)
(142,050)
Net income (ignoring income taxes)
$ 49,350
$102,750
Uncle Bill was concerned about the operating results for 2014 and asked his recently hired accountant, "If sales increased in 2014, why was net income less than half of what it was in 2013?" In February of 2015, Uncle Bill got his answer: "The ending inventory reported in 2013 was overstated by $35,250 for merchandise that we were holding on consignment on behalf of Kirk's Servistar. We still keep some of their appliances in stock, but the value of these items was not included in the 2014 inventory count because we don't own them."
a. Recast the 2013 and 2014 income statements to take into account the correction of the 2013 ending inventory error.
b. Calculate the combined net income for 2013 and 2014 before and after the correction of the error. Explain to Uncle Bill why the error was corrected in 2014 before it was actually discovered in 2015.
c. What effect, if any, will the error have on net income and stockholders' equity in 2015?
Citradoria Corporation is a regular corporation that contributes $35,000 cash to qualified charitable organizations during 2014. The corporation has net operating income of $140,000, before deducting the contributions, and dividends received from dom..
What are noncash investing and financing activities? Provide an example. How are such transactions shown on the statement of cash flows?
The GoodTaste Club collected recipes from members and published a cookbook entitled Eat 'Em Up. The book will sell for $31 per copy. The chairwoman of the cookbook development committee estimated that the club needed to sell 8,100 books to break even..
The question is about ratio analysis finding out liquidity and solvency of the company - relative profitability of the companies by computing the net income and earnings per share for each company for 2007.
Prepare the service revenue budget for 2012 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue
Determine the IRR for Blue Snow's snowboard project and determine the NPV for Blue Snow's snowboard project
What is the value-added ratio? Round to nearest whole percent.
ForCo, a foreign corporation, receives interest income of $100,000 from USCo, an unrelated domestic corporation. USCo has historically earned 85% of its income from foreign sources. What amount of ForCo’s interest income is U.S. source?
Central will pay maintenance and operating costs. The building is being depreciated straight-line, with an estimated remaining life of 16 years. Make entries to record the sale and leaseback of the building.
Aviance produces two products: hammers and screw drivers. Demand for both products is almost equal; however, the company has only 50 hours of machine time remaining in the month before the machine must be shut down for maintenance.
A company purchased 100 units for $20 each on January 31. It purchased 100 units for $30 on February 28. It sold 150 units for $45 each from March 1 through December 31. If the company uses the Last-In, First-Out inventory costing method, what is the..
Sawyer Manufacturing Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last year, the Corporation worked 34,000 actual direct labor-hours and incurred $512,000 of actual manufacturing ..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd