Question

A company reported the net income of $58,000 for the year ending 2018. However, it was discovered that the opening inventory was overstated by $9,000 and the ending inventory is understated by $11,000. Compute the corrected net income. a. $60,000 b. $78,000 c. $56,000 d. $47,000​

Answer 1

Answer:

will answer with a numerical example:

sakes 200,000

minus :

beginning inventory 50000

+purchases. 114000

-ending inventory 22000

cost of good sold 142000

gross income 58000

Beginning inventory should have been 9000 less

Ending inventory should have been 11000 more then ;

sakes 200,000

minus :

beginning inventory 50000–9000= 41000

+purchases. 114000

-ending inventory 22000+11000=33000

cost of good sold 122000

gross income 78,000

Explanation:

hope it helps

Answer 2

Answer:

b. $ 78,000 is your answer!