Answer:
a. net income= understated, retained earnings= understated
Explanation:
In accounting and auditing it is established that ending inventory and net income moves in the same direction when it comes to being overstated or understated. That implies that if <u>ending inventory is understated</u>, then cost of goods sold will be overstated by the same amount, and when costs are overstated it finally leads to <u>net income and gross profit being understated.</u>
Furthermore, since it is the net income that will be added to retained earnings thereafter, it implies that the lesser the net income the lesser will be retained earnings. Hence, understatement of ending inventory is understatement of net income and also retained earnings.
LA califora 5421 beach street 2357 LA city
I have always had this idea of producing bar soap. I decided to sit down and think about how to start after watching several videos on how to mix the ingredients that make up this. I decided to approach a lady that deals on chemicals and coastic soda to ask her more about where and how to get the things I needed for this. She took her time and directed me.
During this period I saw a poster while on my way from visiting a friend, and its all about Empowerment and things like what I had always wanted was among the contents of what will be taught at the empowerment program.
So I make out time and attend and the instructors were spitted into groups and I had to move into the group of what I had always desire. I was able to learn the process gradually and started the next week to produce and distribute to stores. I extended my products to markets because I made it of international standard too. Today the outbreak of this dreaded disease has boosted the production of my product as people rushes it few days after I produce.
Answer:
Loan taken: 58,320
Explanation:
We add up the beginning cash with the receipts and subtract the expenses.
Then, we compare agaisnt the mnimum required balance
Beginning Cash 34,000
Cash Receipts
Sales 22,160
Total cash form operations: 56,160
Cash disbursements
S&A expense (w/o depreciations) 48,000
Ending Cash from operations 8,160
Minimum Balance: <u> 66,480 </u>
Loan taken: 58,320
