Reference no: EM1368750
Inventory on Dec 31,2004 is understated by 66,000
inventory on dec 31, 2005 is overstated by 30,000
year sold
2004 2005 2006
a.cost of good 715,000 847000 770000
b.net income 220,000 275000 231000
c.total current
assets 1,15,000 1,265,000 1,100,000
d.total equity 1,287,000 1,430,000 1,232,000
for each financial statement a,b,c,d prepare a table similar to the following
figure 2004 2005 2006
reported amount
Adj for error 12/31/04
12/31/05
corrected amount
2. what is the error in total net income for the combined three year period resulting from the inventory errors?
3. Explain why the understatement of inventory by 66,000 at then end of 2004 results in an understatement of equity by the same amount in that year.
|
Question about marginal propensity to consume
: The marginal propensity to consume equals 0.3, and the marginal propensity to import is 0.1. If Americans suddenly increase their desire for European cars and the MPm raise to 0.3,
|
|
Prepare the request for proposal
: Prepare the request for proposal (RFP) and techniques used to evaluate the proposals - several other key project decision makers to review the approach you are going to take on the project.
|
|
How to interconnect two areas using twisted-pair ethernet
: Provided that both engineering and front office areas use 10BaseT (twisted-pair Ethernet), how might you interconnect two areas?
|
|
Determine the relationship between the mpc and the mps
: If consumption increases through $12 billion when real disposable income raise by $15 billion, What is the value of the MPC? Determine the relationship between the MPC and the MPS?
|
|
Find error in total net income
: Describe why the understatement of inventory by 66,000 at then end of 2004 results in an understatement of equity by same amount in that year.
|
|
Draw flow chart to compute arithmetic operation
: While drawing flow chart, you require to add little more functionality as follows like during any computations of any arithmetic operation, if result exceeds 2000 or comes equal to 100, user must input the data again
|
|
Punishment is not for the condemnation of the guilty
: Business - what does this mean to you and how could you apply it to your subordinates
|
|
Show the classification of industries
: Which classification fits the industries above? If you can, please support the classification with FACTUAL data from a recent article(s) and link the article so I have an understanding of each industry and its movement
|
|
Calculation of return on equity
: Past year both Country homes and City Construction earned $1 million in Net Income. Both companies have asstes of $10 million. Country created a return on equity of 11.1 percent
|