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
PIT_PIT [208]
3 years ago
12

Wellington Company reported net income of $60,000 in 2017 and $80,000 in 2018. However, ending inventory was overstated by $7,00

0 in 2017.Compute the correct net income for Wellington Company for 2017 and 2018.
Business
1 answer:
olchik [2.2K]3 years ago
6 0

Answer:

2017 Net Income = $53000

2018 Net Income = $87000

Explanation:

The overstatement of ending/closing inventory causes the Cost of Goods Sold (COGS) to be understated and the Gross and Net profit to be overstated by the same amount.

If the 2017 ending inventory was iverstated by $7000, the correct profit figure for 2017 will be $7000 less than is reported.

2017 correct Net Income = 60000 - 7000 = $53000

An overstatment of ending inventory in one year also means and overstatement of opening inventory of the next year. Thus, the 2018 opening inventory is overstated by $8000 and an overstatement of opening inventory means an overstatement of COGS and an understatement of Gross and Net Income by the same amount.

Thus, the correct Net Income for 2018 = 80000 + 7000 = $87000

You might be interested in
Clem Oatley could grow wheat and barley. He could grow 75 bushels of wheat or 125 bushels of barley using the same resources on
BabaBlast [244]

Answer:

Clem should specialise in wheat production because he has higher profits there

Explanation:

Clem needs to make a decision on the product that will maximise his profits and not just the number of units of products he can manufacture.

If he produces only wheat he will have profit of 75 bushels * $2 = $150

If he produces only barley his profit will be 125 bushels * $0.80 = $100

This shows that wheat is more profitable for Clem. Even though he can produce more units of barley.

6 0
3 years ago
Read 2 more answers
mark and shirley, married filing jointly with a modified adjusted gross income (magi) of $92,300, adopted their son, matthew in
kap26 [50]

Answer:

$14890 is the correct option because if any parent adopts a child in 2022  there is a federal adoption tax credit of up to $14,890 per child.

<h3>Claiming the Federal Adoption Tax Credit for 2022</h3>

A federal adoption tax credit of up to $14,890 per child is available for adoptions that are finalized in 2022. The adoption tax credit for 2022 is not transferable.

Parents who wish to receive the credit must:

have adopted a child who is not a stepchild - The child must be less than 18 or incapable of caring for themselves due to physical or mental impairment.

abide by the income restrictions - How much of the credit parents can claim depends on their income. Families earning less than $214,520 in modified adjusted gross income in 2022 are eligible for the full credit. People who earn between $223,410 and $263,410 can receive a partial credit; people who earn more than $263,410 cannot.

To know more about 'Adoption tax credit', visit :brainly.com/question/15410304

#SPJ4

6 0
2 years ago
What will you need to change to make the message appropriate for both a subordinate and other subordinates? Make the message eve
bezimeni [28]

Answer: The correct answer is "Focus on congratulating the team using each individual’s name and use a more formal tone.".

Explanation: In order for the message to be more appropriate both for a subordinate and for other subordinates, the team and each individual subject should be congratulated with their own name so that they feel part of it and feel that their work is important for the team always in a formal tone that maintains respect among all.

4 0
3 years ago
Austingoodin<br> you cute to let go out pls
Arisa [49]

aakhdgdbcbhchcbfbnfnfnfnnfnfnnrntnjf

3 0
3 years ago
On August 1, our company purchases $1,000 worth of merchandise inventory on credit with the terms 2/10, n/30. What is the amount
vampirchik [111]

Answer:

a) $1,000

Explanation:

Early Settlement Discount

This form of quotation is common with suppliers offering their customers deferred payment arrangement in a sale contract. Usually, under this arrangement customers are allowed to purchase goods on credit and settle their acccount at a specified  later date.

However, to encourage customers to pay up their outstanding earlier than expected, suppliers do offer early settlement discount as incentives to induce prompt payment.

A quotation of 2/10, n/30

This implies that the customer is a given a 30-day period from the date of purchase within which he is expected to settle his account. However, if he does so within the next 10 days of purchase he will be given a 2% discount.

<em>Applying this to the question, the purchase date is August 1, the the latest date for which account is settle to qualify for early settlement discount will be 11 days i.e (1+10) .</em>

Since the payment will be made on August 12, no cash discount will received. Therefore, a payment of gross amount of $1,000 would be credited to the cash account.

7 0
3 years ago
Other questions:
  • Crowl Corporation is investigating automating a process by purchasing a machine for $809,100 that would have a 9 year useful lif
    15·1 answer
  • Alexis company recently completed 10,600 units of its single product, consuming 32,000 labor hours that cost the firm $480,000.
    14·1 answer
  • Quirk Drugs sold an issue of 30-year $1,000 par value bonds to the public that carry a 10.85% coupon rate, payable semi-annually
    15·1 answer
  • A car dealership performs a credit check on a potential customer. according to the credit bureau, the customer's credit score is
    8·1 answer
  • According to the FASB conceptual framework, certain assets are reported in financial statements at the amount of cash or its equ
    15·1 answer
  • _______________ of well-to-do individuals often put their own money into small new companies at an early stage of development, i
    11·1 answer
  • FIRST ANSWER GETS BRAINLIEST!
    13·1 answer
  • Sosa Diet Supplements had earnings after taxes of $1,170,000 in 20X1 with 347,000 shares of stock outstanding. On January 1, 20X
    9·1 answer
  • On January 1, 2022, Swifty Corporation had Accounts Receivable of $ 51,900 and Allowance for Doubtful Accounts of $ 3,400. Swift
    12·1 answer
  • At the end of last year, Cynthia, a 20 percent partner in the five-person CYG partnership, has an outside basis of $28,500, incl
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!