Hudson, Inc. is a calendar year corporation. Its financial statements for the years 2015 and 2014 contained

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Hudson, Inc. is a calendar year corporation. Its financial statements for the years 2015 and 2014 contained the following errors:

2015 2014

Ending inventory $6,000 overestimated $16,000 overestimated

Depreciation expense $4,000 underestimated $12,000 overestimated

Assume that no correcting entries were made as of December 31, 2014 or December 31, 2015 and that no additional errors occurred in 2016. Ignoring income taxes, by how much will working capital be overstated or understated as of December 31 2016?

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Intermediate Accounting

ISBN: 9787300071374

3rd Edition Vol. 1

Authors: Kin Lo, George Fisher

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Posted Date: May 12, 2023 06:30 AM

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Hudson, Inc. is a calendar year corporation. Its financial statements for the years 2015 and 2014 contained

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To determine the impact on working capital we need to consider the effect of the errors on the curre... View the full answer

Intermediate Accounting

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