Q 8.28: the net income for tina's company for the current year was $255,000, while the total assets reported were $3,200,000. at the beginning of that year, the inventory was understated by $69,000, and at the end of the year it was understated by $30,000. the correct amount for total assets and net income for the year is

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Business

Craig

13 March, 06:39

Q 8.28: the net income for tina's company for the current year was $255,000, while the total assets reported were $3,200,000. at the beginning of that year, the inventory was understated by $69,000, and at the end of the year it was understated by $30,000. the correct amount for total assets and net income for the year is

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Kareem Brady · Answer 1

Cost of goods sold = beginning inventory + purchases - ending inventory

Cost of goods sold = - 69,000 + purchases - (-30,000)

Cost of goods sold = - 39,000

Subtract cost of goods sold that is understated 39,000 by 255,000.

Net income = $216,000

Since the beginning inventory is understated by $30,000 the total assets are.

Total assets = $3,230,000