The SS Co. reported the following amounts on their financial statements for Year 1, Year 2, and
Question:
The SS Co. reported the following amounts on their financial statements for Year 1, Year 2, and Year 3: For the year ended December 31
Year 1 Year 2 Year 3
Cost of goods sold $75,000 $87,000 $77,000
.........................................................
Net income 22,000 25,000 21,000
.........................................................
Total current assets 155,000 165,000 110,000
.........................................................
Equity 287,000 295,000 304,000
.........................................................
It was discovered early in Year 4 that the ending inventory on December 31, Year 1 was overstated by $6,000, and the ending inventory on December 31, Year 2 was understated by $2,500. The ending inventory on December 31, Year 3 was correct. Ignoring income taxes determine the correct amounts of cost of goods sold, net income, total current assets, and equity for each of the years Year 1, Year 2, and Year
Expert Answer:
Item Year 1 Year 2 Year 3 COGS 750006000 8700060002500 770003500 Net Income 220006000 2500060... View the full answer
Introduction to Statistical Investigations
ISBN: 978-1118922002
1st edition
Authors: Beth L.Chance, George W.Cobb, Allan J.Rossman Nathan Tintle, Todd Swanson Soma Roy
