Suppose

SebagoSebago

$$Inc$.\text{'}$s

$ $2\mathrm{.}0$$$2\mathrm{.}0$

million cost of inventory at its fiscal$$ year$-$end on January$31,$

$20$ Upper X $120$X$1,$

was understated by

$ $0\mathrm{.}3$$$0\mathrm{.}3$

million.

$1.$

Would

$20$ Upper X $120$X$1$

reported gross profit of

$ $5\mathrm{.}4$$$5\mathrm{.}4$

million be$$ overstated, understated, or$$ correct? What would be the actual amount of gross profit for

$20$ Upper X $120$X$1?$

$2.$

Will

$20$ Upper X $220$X$2\text{'}$s

gross profit of

$ $5\mathrm{.}7$$$5\mathrm{.}7$

million be$$ overstated, understated, or$$ correct? What would be the actual amount of gross profit for

$20$ Upper X $220$X$2?$

Question content area bottom

Part $1$

$1.$ Would

$20$ Upper X $120$X$1\text{'}$s

reported gross profit of

$ $5\mathrm{.}4$$$5\mathrm{.}4$

million be$$ overstated, understated, or$$ correct? What would be the actual amount of gross profit for

$20$ Upper X $120$X$1?$

Would

$20$ Upper X $120$X$1\text{'}$s

reported gross profit of

$ $5\mathrm{.}4$$$5\mathrm{.}4$

million be$$ overstated, understated, or$$ correct?

The reported gross profit for

$20$ Upper X $120$X$1$

of

$ $5\mathrm{.}4$$$5\mathrm{.}4$

million was

$$

$$

Part $2$

Enter the actual amount of gross profit for

$20$ Upper X $120$X$1.$

$($Enter the amount in millions as provided in the problem$$ statement, X$.$X$.)$

Actual amount of gross profit for $20$X$1$:

$$

Part $3$

$2.$ Will

$20$ Upper X $220$X$2\text{'}$s

gross profit of

$ $5\mathrm{.}7$$$5\mathrm{.}7$

million be$$ overstated, understated, or$$ correct? What would be the actual amount of gross profit for

$20$ Upper X $220$X$2?$

The reported gross profit for

$20$ Upper X $220$X$2$

of

$ $5\mathrm{.}7$$$5\mathrm{.}7$

million is

$$

$$

correct.

overstated.

understated.

Part $4$

Enter the actual amount of gross profit for

$20$ Upper X $220$X$2.$

$($Enter the amount in millions as provided in the problem$$ statement, X$.$X$.)$

Actual amount of gross profit for $20$X$2$:

$$