Solution-Compute the gross profit percentage for all four

Compute the gross profit percentage for all four quarters

Assignment Help Accounting Basics

Reference no: EM13872258

Partial income statements for Murphy & Murphy (M & M) reported the following summarized amounts:

After these amounts were reported, M & M's accountant determined that the inventory at the end of Quarter 2 was understated by $ 3,000. The inventory balance at the end of the other three quarters was accurately stated.

Required:

1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.

2. Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction. Does the pattern of gross profit percentages lend confidence to your corrected amounts? Explain. Round your answer to the nearest percentage.

Reference no: EM13872258

Questions Cloud

Who manages the database and what skills do they need : Storage location - Would this be on site? What about virtual? Explain reasoning. Based on storage location, what would the client have to buy, setup? Who manages the database? What skills do they need

Define and discuss each type of managed care organization : Define and discuss each type of managed care organization

What should be reported as total intangible assets : The adjusted trial balance of the Laventhal Corporation as of December 31, 2014. What should be reported as total intangible assets on Laventhal's December 31, 2014 balance sheet?

Find an optimal solution to the linear program : Find an optimal solution to the linear program and General Improving Search Algorithm to find a better solution

Compute the gross profit percentage for all four quarters : Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction. Does the pattern of gross p..

Determines what happens to demand while others believe : determines what happens to demand while others believe demand determines

What kind of decision-making bias do think this represents : When asked by an employee if the drop in sales is due to the cut in the marketing budget, she says, "No!" and insists there must be a different explanation. What kind of decision-making bias do you think this represents, and why? What steps would ..

Reseach topic-tobacco use and health effects : The reseach topic is "tobacco use and health effects" 5 pages with 5 sources and it must be cited the sources must be from this website : http://libraries.wright.edu

Analyze how production and cost functions in the short run : Analyze how production and cost functions in the short run

User Account

All Pages

Compute the gross profit percentage for all four quarters

Reference no: EM13872258

Reference no: EM13872258

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT