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vladimir2022 [97]
3 years ago
13

Herb Company manufactured more product than it was able to sell during the current year. If the salaries of the sales staff of H

erb Company are improperly recorded as a product cost, what will be the likely effect on net income of the period in which the error occurs?
Business
1 answer:
beks73 [17]3 years ago
5 0

Answer: the net income Wii b grossly overstated

Explanation:

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Answer:

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Cash flow from Operating activities - Indirect method

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Adjustment made:

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Add: Decrease in accounts receivable $5,000

Add: Decrease in inventory $15,000

Add: Increase in accounts payable $14,000

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Total of Adjustments $85,500

Net Cash flow from Operating activities               $325,500

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