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
Lilit [14]
3 years ago
12

Wilmington Company reported pretax income of $25,000 during 2018 and $30,000 during 2019. Later it was discovered that the endin

g inventory for 2018 was understated by $2,000 (and not corrected in 2018). What is the correct pretax income for 2019?
Business
1 answer:
Vika [28.1K]3 years ago
6 0

Answer:

$28,000

Explanation:

When closing inventory is understated during an year, it would lead to understated profits during the year i.e understated net income for the year 2018.

So, correct pre tax income for 2018 would be,

= reported pre tax income + the amount by which closing inventory was understated

= $25,000 + $2000 = $27000

Now, since the same closing inventory would become the opening inventory for 2019, this means,  the opening inventory for 2019 was understated.

When opening inventory is understated, it would lead to inflated net income for the year 2019. Thus, the extent by which the inventory has been understated has to be reduced from the reported pre tax profits for the year 2019.

Hence, correct pre tax income for 2019 would be,

= $30,000 - $2000 = $28000

You might be interested in
According to economists, one reason few professional athletes have PhD’s is that the:
ryzh [129]

Answer:

d. opportunity cost of going to graduate school is too high.

Explanation:

The cost of choosing an alternative instead of another is known as the opportunity cost. In order to obtain a PhD, athletes would have to delay their professional careers, which would cause then to potentially miss out on years of millionaire contracts. Therefore, the opportunity cost of going to graduate school is too high.

5 0
3 years ago
How can the use of new technology in industry benefit the US government?
DiKsa [7]

Answer:

All the statements are correct.

Explanation:

A and D are correct because better transportation technology means that the government can import (purchase materials) and export (transport goods) around the world with relative ease.

B is correct because automation means that machines can replace some humans in the labor force, and machines do not have to be paid a wage.

C is correct because if the government has advanced technology at its disposal, it can be at the forefront of tecnnological changes.

4 0
3 years ago
On November 15, 20X3, Chow Inc., a U.S. company, ordered merchandise FOB shipping point from a German company for €200,000. The
MArishka [77]

Answer:

$4,000 gain

Explanation:

Some information was missing:

the spot rates for euros were:

  • November 15, 20X3 $0.4955  per €1
  • December 10, 20X3 $0.4875  per €1
  • December 31, 20X3  $0.4675  per €1
  • January 10, 20X4 $0.4475  per €1

In Chow's December 31, 20X3, income statement, the foreign exchange gain is ?

the goods costed €200,000 x 0.4875 = $97,500 on December 10, 20x3

the goods costed €200,000 x 0.4675 = $93,500 on December 31, 20x3

Since the goods were sold FOB shipping point, we have to use the shipping date (December 10) to calculate the original price. By December 31, the price in US dollars had decreased by $4,000 resulting in a foreign exchange gain.

8 0
3 years ago
A certain movie star's salary for each film she makes consists of a fixed amount, along with a percentage of the gross revenue t
umka2103 [35]

Salary relationships usually have behaviors that can be expressed through mathematical equations, for this case we must locate the information they give us, according to which the salary of the movie star S is equal to a fixed basic remuneration b plus a percentage x of the gross income g, that is:

S = b + gx

With this equation and the data they give us, we can solve the request so :

\boldsymbol{1)} \; 32 = b + 100x\\\boldsymbol{2)} \; 24 = b + 60x

We clear the basic remuneration  b from the second equation and replace in the first:

\boldsymbol{2)} \; 24 = b + 60x\\24-60x = b\\\boldsymbol{1)} \; 32 = b + 100x\\32 = (24-60x) + 100x\\32-24=100x-60x\\8=40x\\\frac{8}{40} =x\\\boldsymbol{x=0,2}\\b=24-60x\\b=24-60(0,2)\\b=24-12\\\boldsymbol{b=12}

Thus, with the fixed basic remuneration and the percentage of gross income calculated, we can estimate how much the following film should obtain so that the movie star obtains at least  40 millions salary:

40 = g (0.2) +12\\40-12 = g (0.2)\\\frac{28}{0.2y} = g\\\boldsymbol{g = 140}

Answer

The <em>minimum amount</em> of gross income that the next film should generate is \$ 140 <em>millions</em>

3 0
3 years ago
Read 2 more answers
The disagreement between these economists is most likely due to . Despite their differences, with which proposition are two econ
krek1111 [17]

Answer:

Import quotas and tariffs cause a decline in economic welfare.

Explanation:

Despite of difference in opinion of economists these are the propositions on which 93 percent of economists agree according to a survey. As for other propositions of economics its hard to chose two random economists agreeing with each other.

6 0
3 years ago
Other questions:
  • Consumers buy from amazon when brand website shipping too expensive long
    15·1 answer
  • Goode Inc.'s stock has a required rate of return of 13.50%, and it sells for $15.00 per share. Goode's dividend is expected to g
    13·1 answer
  • Inputs and outputs Megan's Performance Pizza is a small restaurant in San Francisco that sells gluten-free pizzas. Megan's very
    6·1 answer
  • Prairee partnership has four equal partners, Dodd, Crank, Pick, and Mack. Each of the partners had a tax basis of $320,000 as of
    15·1 answer
  • A strategy to be the industry's overall low-cost provider tends to be more appealing than a differentiation or best-cost or focu
    9·1 answer
  • Ralph Waters operates a watch repair business in Mesa, Arizona. He orders most of his parts from out-of-state suppliers. He orde
    8·1 answer
  • On January 1, Year 1, Willette Company sold $240,000 of 6% ten-year bonds. Interest is payable semiannually on June 30 and Decem
    10·1 answer
  • Legal forms are most like _____.
    11·1 answer
  • The complete portfolio refers to the investment in _________.
    9·1 answer
  • When people improve their
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!