The statements of earnings for Pruitt Company summarized for a four- year period show the following (amounts

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The statements of earnings for Pruitt Company summarized for a four- year period show the following (amounts in thousands of dollars):
The statements of earnings for Pruitt Company summarized for a

An audit revealed that in determining these amounts, the ending inventory for 2013 was understated by $ 22.
Required:
1. Revise these statements of earnings to reflect the correct amounts.
2. Did the error affect the cumulative net earnings for the four- year period? Explain.
3. What effect did the error have on the income tax expense for 2013 and 2014?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula                Ending Inventory Formula =...
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Related Book For  answer-question

Financial Accounting

ISBN: 978-1259103285

5th Canadian edition

Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M

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