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user100 [1]
3 years ago
15

Guns R Us overstated its ending inventory in the current year by $5,000. The company incorrectly reported $100,000 of net income

. Explain the consequences of this error on the current period's income statement:_______.A. Cost of goods sold will be too high by $5,000.B. Cost of goods sold will be too low by $5,000.C. The correct net income amount should have been $105,000.
Business
1 answer:
lara [203]3 years ago
4 0

Answer:

B. Cost of goods sold will be too low by $5,000.

Explanation:

Given that

Ending inventory overstated in the current year by $5,000

And, the net income is incorrectly reported $100,000

So, due to this error

The cost of goods sold is understated by $5,000

And, the net income is overstated by $5,000

Since the cost of goods sold is understated by $5,000 so it would be too low due to which the net income overstated by $5,000

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If total liabilities increased by $6,000 and the assets increased by $8,000 during the accounting period, what is the change in
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The owner has $2,000 more in assets. therefor the equity increased by 2,000
6 0
3 years ago
In an attempt to reduce poaching of elephant tusks for ivory, officials in Kenya burned illegally gathered ivory. Economists ten
Brut [27]

Answer:

b. the supply of ivory has fallen, leading to an increase in price and reward for poaching.

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal. On the other hand, law of supply states that the higher the price of goods and services, the lower the supply.

Poaching can be defined as an illegal or illegitimate procurement (purchase) of protected wildlife living organisms such as elephants, fish, trees, gaming, etc.

In an attempt to reduce poaching of elephant tusks for ivory, officials in Kenya burned illegally gathered ivory. Economists tend to point out that the supply of ivory has fallen, leading to an increase in price and reward for poaching in accordance with the law of supply.

This ultimately implies that, an increase in the price level of a product usually results in a decrease in the quality of real output demanded along the aggregate demand curve.

6 0
3 years ago
The management team of Wickersham Brothers Inc. is preparing its annual financial statements. The statements are complete except
garik1379 [7]

Answer:

A Schedule Summarizing Operating, Investing, and Financing Cash Flows, using the T-account approach:

                              Operating        Investing         Financing

                         Debit  Credit     Debit    Credit    Debit   Credit

1. Equipment                                          $71,000

2. Note Payable                                                              $13,500

3. Common Stock                                              $20,000

4. Cash Dividends                                                         $22,800

5. Accounts Payable          $2,700

6. Income Tax Expense    $4,000

7. Interest Expense                                                        $3,000

8. Net Income        $53,720

9. Depreciation      $21,280

10. Tax & Interest    $7,000

11. Accts receivable               $13,500

12. Inventory                           $6,750

13. Salaries Payable   $1,350

Total inflows/

outflows                 $83,350 ($26,950)  ($71,000) $20,000 ($39,300)

Net cash from              $56,400              ($71,000)     ($19,300)

Operating activities       $56,400

Investment activities     ($71,000)

Financing activities       ($19,300)

Net cash flows             ($33,900)

Explanation:

a) Data and Calculations:

1.                                                           Current Year   Prior Year

Balance Sheet

Assets

Cash                                                    $ 78,900     $ 99,300

Accounts Receivable                           108,000        94,500

Merchandise Inventory                         81,000        87,750

Property and Equipment                   152,000        81,000

Less:

Accumulated Depreciation             (43,280)     (22,000)

Total Assets                                   $ 376,620  $ 340,550

Liabilities:

Accounts Payable                           $ 13,500     $ 16,200

Salaries and Wages Payable            2,700           1,350

Notes Payable, Long-Term              67,500         81,000

Stockholders’ Equity:

Common Stock                               128,000       108,000

Retained Earnings                          164,920       134,000

Total Liabilities &

Stockholders’ Equity $ 376,620   $ 340,550

2. Current Year  Income Statement

:

Sales                         $ 340,000

Cost of Goods Sold     180,000

Depreciation Expense  21,280

Other Expenses           85,000

Net income               $ 53,720

3. The Wickersham Brothers Inc.'s Statement of Cash Flows is one of the three main financial statements that the management of Wickersham Brothers Inc. must prepare and present to the stockholders of the company and the general public.  It details the Wickersham's cash flows under the operating activities, investing activities, and financing activities sections.

4 0
3 years ago
Bull’s weighted average cost of capital (WACC) be if it has to raise additional common equity capital by issuing new common stoc
hram777 [196]

Answer:

with only one chain and one pendant per necklace.write an expression that shows how much it will cost ronnie to make s short necklaces and n long necklaces. then find the cost for 3 short necklaces 2 long necklaces

8 0
3 years ago
On October 1, 2018, Renfro Company purchased to hold to maturity, 4,000, $1,000, 9% bonds for $3,960,000 which includes $60,000
Nataliya [291]

Answer:

Carrying Value=$3,903,000

Explanation:

First we will calculate the face value:

Face value=4000*$1000

Face value=$4,000,000

Purchase Price= Bond Purchased price- Accrued Interest

Purchase Price=$3,960,000-$60,000

Purchase Price=$3,900,000

Total months=100 months

Straight line Discount amortization= (Face Value-Purchase Price)/Total Months

Straight line Discount amortization=($4,000,000-$3,900,000)/100

Straight line Discount amortization=$1,000

Discount Amortization=Straight line Discount amortization*Discount months

Discount Amortization=$1,000*3

Discount Amortization=$3,000.

Carrying Value=Purchase Price+Discount Amortization

Carrying Value=$3,900,000+$3,000

Carrying Value=$3,903,000

7 0
3 years ago
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