Business, 22.05.2020 22:58 yeet1273

Dallas Corporation prepared the following two income statements:

First Quarter Second Quarter
Sales Revenue $17,000 $20,400
Cost of Goods Sold
Beginning Inventory $3,400 $4,400
Purchases 7,400 12,400
Goods Available for Sale 10,800 16,800
Ending Inventory 4,400 9,400
Cost of Goods Sold 6,400 7,400
Gross Profit 10,600 13,000
Operating Expenses 5,400 6,400
Income from Operations $5,200 $6,600

During the third quarter, the company’s internal auditors discovered that the ending inventory for the first quarter should have been $4,900. The ending inventory for the second quarter was correct.

Required:
a. What effect would the error have on total Income from Operations for the two quarters combined?
b. What effect would the error have on Income from Operations for each of the two quarters?
c. Prepare corrected income statements for each quarter. Ignore income taxes.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 18:50

Which of the following is not a potential problem with beta and its estimation? sometimes, during a period when the company is undergoing a change such as toward more leverage or riskier assets, the calculated beta will be drastically different than the "true" or "expected future" beta. the beta of "the market," can change over time, sometimes drastically.

Answers: 3

Answer

Business, 22.06.2019 05:30

The hartman family is saving $400 monthly for ronald's college education. the family anticipates they will need to contribute $20,000 towards his first year of college, which is in 4 years .which best explain s whether the family will have enough money in 4 years ?

Answers: 1

Answer

Business, 22.06.2019 07:10

In a team environment, a coordinator is? a person with expert knowledge or skills in a particular area the team needs. a good listener who works to resolve social problems among teammates. a leader who team members focus on their tasks. a good networker who likes to explore new ideas and possiblities.

Answers: 2

Answer

Business, 22.06.2019 11:40

In early january, burger mania acquired 100% of the common stock of the crispy taco restaurant chain. the purchase price allocation included the following items: $4 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. burger mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. what is the total amount of amortization expense that would appear in burger mania's income statement for the first year ended december 31 related to these items?

Answers: 2

Answer

You know the right answer?

Dallas Corporation prepared the following two income statements:

First Quarter Second Q...

Questions