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Compute the correct net income figure for each of years

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Reference no: EM13872471

 

Purpose: This exercise will enable you to practice identifying the effects of inventory errors on the financial statements.

The net income per books of Wacky Wicks Company was determined without knowledge of the errors indicated.

Year

Net Income Per Books

Error in Ending Inventory

2011

$ 150,000

Overstated                              $  9,000

2012

156,000

Overstated                                 21,000

2013

162,000

Understated                               33,000

2014

168,000

No error

Instructions

Compute the correct net income figure for each of the four years after taking into account the inventory errors.

Reference no: EM13872471

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