Sheridan Inc. reported total assets of $6408000 and net income of $503000 for the current year. Sheridan determined that inventory was understated by $137000 at the beginning of the year and $58700 at the end of the year. Ignoring income taxes, what is the corrected amount for total assets and net income for the year

Question

Business

Hillary Stanton

21 August, 12:04

Sheridan Inc. reported total assets of $6408000 and net income of $503000 for the current year. Sheridan determined that inventory was understated by $137000 at the beginning of the year and $58700 at the end of the year. Ignoring income taxes, what is the corrected amount for total assets and net income for the year

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Russell Lyons · Answer 1

Solution:

Given,

Total assets = $6408000

Net income = $503000

Now, to calculate corrected amount for total assets and net income for the year:

503000 + 137000 = 640,000

The corrected amount for total assets and net income for the year : 640,000