Question

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

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