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
Ratling [72]
3 years ago
13

Pow Corp. accidentally overstated its 2018 ending inventory by $750. Assume that ending 2019 inventory is accurately counted. Th

e error in 2018 will have what effect on Pow Corp.? a. 2018 net income is understated by $750. b. 2018 net income is overstated by $750. c. 2019 net income is understated by $750. d. Both b and c are correct.
Business
1 answer:
sergeinik [125]3 years ago
8 0

Answer:

b. 2018 net income is overstated by $750

Explanation:

As the ending inventory is overstated the COGS will be understated thus, the income was overstate as well. Because the expenses reduced from the sales revenues were lower than correct.

Also we can deduct the same logic considering the accounting equation

Assets = liab + equity

if asssets are 750 higher than it should, then Equiy is higher as well

+750  = +750

Equity is affected for the net income and dividends. Thus, we can also conclude the net income is overstated by 750

You might be interested in
Debating provides citizens with the opportunity to be informed about current events, discuss important issues, work together and
ale4655 [162]
Hey there!

Your answer is:

D, none of these.

Hope this helps!
Have a great day! (:
6 0
3 years ago
Read 2 more answers
Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow 1 $850 2 1,100 3 1,300 4 1,150 Re
Gwar [14]

Answer:

The present value at the discount rate of 10% is $3,443.99  ,$2,955.44 at 17% and $ 2,428.00   at 27%

Explanation:

The present were arrived at by discounting each year's cash flow to present value by applying discounting  factor given  as 1/(1+r)^n where r is the discounting rate and n is the number of applicable time horizon.

Kindly find attached spreadsheet showing full computations of the present values

Download xlsx
8 0
3 years ago
You have figured out the marginal cost and the marginal benefit of buying an extra smoothie. In 2-3 sentences, describe how you
saw5 [17]
I think I must first get the marginal cost of the product before i bought if it is worth it to its value, Then i would compute for the marginal benefit to know what would i gain in this product. Lastly I would compare both the marginal cost and marginal percentage if the cost is lower than the benefit then the product is worth it to buy.
6 0
4 years ago
Read 2 more answers
PLEASE do your best on these questions, it’s 75% of my grade
Simora [160]

Answer:

C

Explanation:

Im pretty sure its C. Everyone has to sign a lease when renting something

8 0
3 years ago
Read 2 more answers
A firm must decide whether to construct a small, medium, or large stamping plant. A consultant’s report indicates a .20 probabil
Flura [38]

Answer:

EV(1) = max(46.8, 44.4, 53.6) = 53.6m

Explanation:

Diagram is shown in the attached file

EV(5) =max(42, 48) = 48m

EV(6) =max(46, 50) = 50m

EV(2) =0.20(42) + 0.80(48) = 46.8m

EV(3) =0.20(22) + 0.80(50) = 44.4m

EV(4) =0.20(-20) + 0.80(72) = 53.6m

EV(1) =max(46.8, 44.4, 53.6) = 53.6m

3 0
4 years ago
Other questions:
  • A decrease in plant and equipment ____ cash and a decrease in common stock ____ cash. question 1 options:
    6·1 answer
  • Reynolds manufacturers inc. has estimated total factory overhead costs of $95,000 and expected direct labor hours of 9,500 for t
    15·1 answer
  • Sumter Pumps Corporation, a manufacturer of industrial pumps, reports the following results for the year ended December 31, 20Y3
    10·1 answer
  • The decision to issue debt rather than additional shares of stock is an example of:
    6·1 answer
  • A special repair to a machine will extend the life of the machine an additional four years beyond the original estimated life of
    6·1 answer
  • Suppose that each of two prisoners, Mel and Max, has the independent choice of confessing to a crime or not confessing. If neith
    12·1 answer
  • Goldin Corporation currently pays its salesperson a flat salary of $5,000 per month and is considering paying him $20 per unit i
    6·1 answer
  • The demand for money is higher in japan than in the united states because:
    5·1 answer
  • Under _____, a company compares some dimension of its performance to that of another firm, be it a competitor or in a totally di
    7·1 answer
  • Making hypothetical changes to data and observing the results is:
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!