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 22:30

Emily sold the following investments during the year: stock date purchased date sold sales price cost basis a. 1,000 shares dot com co. 03-21-2007 02-04-2018 $20,000 $5,000 b. 500 shares big box store 05-19-2017 01-22-2018 $8,200 $7,500 c. 300 shares lotta fun, inc. 10-02-2017 09-21-2018 $3,000 $4,500 d. 700 shares local gas co. 06-17-2017 11-11-2018 $14,000 $17,000 for each stock, calculate the amount and the nature of the gain or loss.

Answers: 3

Answer

Business, 22.06.2019 02:20

Larissa has also provided the following information. during the year, the company raised $36 million in new long-term debt and retired $20.52 million in long-term debt. the company also sold $22 million in new stock and repurchased $32.4 million. the company purchased $54 million in fixed assets, and sold $6,107,400 in fixed assets. larissa has asked dan to prepare the financial statement of cash flows and the accounting statement of cash flows. she has also asked you to answer the following questions: 1. how would you describe east coast yachts' cash flows? 2. which cash flows statement more accurately describes the cash flows at the company? 3. in light of your previous answers, comment on larissa's expansion plans.

Answers: 2

Answer

Business, 22.06.2019 08:00

How do communism and socialism differ in terms of the role that government plays in the economy ?

Answers: 1

Answer

Business, 22.06.2019 18:20

Now ray has had the tires for two months and he notices that the tread has started to pull away from the tire. he has already contacted the place who sold the tires and calmly and accurately explained the problem. they didn’t him because they no longer carry that tire. so he talked with the manager and he still did not get the tire replaced. his consumer rights are being violated. pretend you are ray and write a letter to the company’s headquarters. here are some points to keep in mind when writing the letter: include your name, address, and account number, if appropriate. describe your purchase (name of product, serial numbers, date and location of purchase). state the problem and give the history of how you tried to resolve the problem. ask for a specific action. include how you can be reached.

Answers: 3

Answer

You know the right answer?

Dallas Corporation prepared the following two income statements:

First Quarter Second Q...

Questions