Suppose Staples Inc.' ($ 1.9) million cost of inventory at its fiscal year-end on January 31 .

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Suppose Staples Inc.' $\$ 1.9$ million cost of inventory at its fiscal year-end on January 31 . 2019 , was understated by $\$ 0.5$ million.

1. Would 2019 reported gross profit of $\$ 5.2$ million be overstated, understated, or correct? What would be the correct amount of gross profit for 2019?

2. Will 2020 's gross profit of $\$ 5.6$ million be overstated, understated, or correct? What would be the correct amount of gross profit for 2020?

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Financial Accounting

ISBN: 9780135433065

7th Canadian Edition

Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin

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Question Posted: May 10, 2024 04:02 AM

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Suppose Staples Inc.' ($ 1.9) million cost of inventory at its fiscal year-end on January 31 .

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Financial Accounting

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