1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lesya692 [45]
3 years ago
5

At december​ 31, 2018​,stevenson company overstated ending inventory by​ $36,000. how does this error affect cost of goods sold

and net income for 2018​?
Business
1 answer:
jarptica [38.1K]3 years ago
5 0

The Cost of Good Sold is $36,000 lower than it should have been and the net income is $36,000 higher than it should have been.

There are two formulas that are important to know for this question. The first is Beg. Inventory + Purchases - Ending Inventory = COGS. The second formula is Sales - Cost of Good Sold = Gross Profit.

If you reported a higher ending inventory it is going to result in a lower value for Cost of Good Sold. In this case the company had too high of an ending inventory by $36,000, which mean that the COGS is $36,000 lower than actual.

When you have a COGS that is lower than it should be you are going to have a gross profit which is overstated. The Income is overstated by $36,000.

You might be interested in
If you wanted to build a structure on a river bank, you should build the structure __________ to maximize its lifetime.
Marina CMI [18]

Answer:

Above the point bar

Explanation:

channelization

Straightened sections of the river channel are lined with concrete to increase the rate of flow and reduce bank collapse

Advantages of channelization

Improves rate of flow

Benefits transportation

Reduces bank collapse

6 0
3 years ago
The College of Business is deciding between two photocopier options. The first is to lease a high-end machine for $8,400/year. T
Sedaia [141]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The first is to lease a high-end machine for $8,400/year.The only additional costs are the cost of paper, which is $0.01/sheet.

The other option is to purchase a machine. The cost is $5,000 and the per sheet cost increases (toner, maintenance) to $0.02.

First, we need to determine the total cost formula for each option:

Option 1:

Total cost= 8,400 + 0.01x

Option 2:

Total cost= 5,000 + 0.02x

A) Volume= 270,000

Option 1:

Total cost= 8,400 + 0.01*270,000= $11,100

Option 2:

Total cost= 5,000 + 0.02*270,000= $10,400

Option 2 is the cheapest.

B) Volume= 240,000

Option 1:

Total cost= 8,400 + 0.01*240,000= $10,800

Option 2:

Total cost= 5,000 + 0.02*240,000= $9,800

Option 2 is the cheapest.

C) To determine the indifference point, we need to isolate X:

8,400 + 0.01x= 5,000 + 0.02x

3,400= 0.01x

340,000=x

The indifference point is 340,000 paper sheets.

5 0
3 years ago
Borrowed 152300 for three years if the qouted rate (apr) is 11.75% and the compounding is daily what is the effective annual rat
Vikki [24]

Answer:

The appropriate response is "12.47%".

Explanation:

The given values are:

Borrowed amount,

= 152300

APR,

= 11.75%

i.e.,

= 0.1175

Now,

The effective annual rate will be:

= (\frac{1+APR}{n} )^n

On substituting the given values, we get

= (\frac{1+0.1175}{365} )^{365}

= (\frac{1.1175}{365} )^{365}

= 1.12466-1

= 0.1247 \ or \ 12.47 \ percent

7 0
3 years ago
In the context of Web marketing, the _____ is computed by dividing the number of clicks an ad gets by the total impressions boug
s2008m [1.1K]

Answer:

Click-through rate

Explanation:

In the context of Web marketing, the click-through rate is computed by dividing the number of clicks an ad gets by the total impressions bought.

5 0
2 years ago
Kimberley Mayfield recently evaluated her subordinate's progress report. She now plans to inform her about the objectives she di
stellarik [79]

Answer: behavioral

Explanation: The tendency in an individual that make him behave in a certain way in a particular situation is called the behavioral component of his attitude. It depicts the intention of a person.

In the given case, Kimberley wants to inform her subordinate what she has not achieved and also advice her how she can improve. This shows that she has a developing instinct and leadership quality in her.

    Thus, from the above we can conclude that the correct option is D.

7 0
3 years ago
Other questions:
  • The following ledger accounts are used by the Heartland Race Track
    8·1 answer
  • In the long run, an increase in aggregate demand from a position of full employment leads to:
    6·1 answer
  • The sticky-price theory of the short-run aggregate supply curve says that if the price level rises by 5% while firms were expect
    5·1 answer
  • VelSad is contemplating the acquisition of Po, Inc. The values of the two companies as separate entities are $32 million and $16
    6·1 answer
  • High Roller Inc. is trying to decide whether to buy a private jet or to lease one. The finder's fee is incurred only if the priv
    11·2 answers
  • First Fidelity Insurance received a call from Second Fifth Bank regarding Margaret Gessner, a former Fidelity employee. Gessner
    6·2 answers
  • Before you role out or disbute a presentation
    8·1 answer
  • How long will it take an investment of $5,000 to grow to $7,500 if it earns simple interest of 10% per year?
    6·1 answer
  • Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $888,000 (37,000 units at $24 each)
    7·1 answer
  • Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hour
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!