Question

Risers Inc. reported total assets of $3,200,000 and net income of $255,000 for the current year. Risers determined that inventory was understated by $69,000 at the beginning of the year and $30,000 at the end of the year. What is the corrected amount for total assets and net income for the year

Answer 1

Answer:

Corrected total assets= $3,230,000

Corrected net income= $216,000

Explanation:

Riser incorporation reported a total assets $3,200,000 and a net income of $255,000 for the Current year

Risers inventory was understated by $69,000 at the beginning of the year and $30,000 at the end of the year

The corrected amount for the total assets can be calculated as follows

= $3,200,000+$30,000

= $3,230,000

The corrected amount for the net income can be calculated as follows

= $255,000-$69,000+$30,000

= $216,000

Hence the corrected amount for total assets and net income for the year is $3,230,000 and $216,000 respectively