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iogann1982 [59]
3 years ago
9

Larkspur, Inc. reports net income of $91,800 in 2022. However, ending inventory was understated $7,800. What is the correct net

income for 2022?
Business
1 answer:
dezoksy [38]3 years ago
3 0

Answer:

$99,600

Explanation:

If the ending inventory was understated that means that they have less of the inventory than they had originally expected, this means that they sold more than they have calculated and therefore have not included the $7,800 in the net income. Therefore, we would need to add this amount to the actual reported net income to get the correct net income for 2022...

$91,800 + $7,800 = $99,600

The correct net income for 2022 is $99,600

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