Uptown Mart reported the following amounts on their financial statements for 201
ID: 2549448 • Letter: U
Question
Uptown Mart reported the following amounts on their financial statements for 2012, 2013, and 2014:
(Note: Pages 233-234 explain the effect of inventory errors. Use them to work on this problem.)
For the Year Ended December 31
2012
2013
2014
Cost of goods sold
$95,000
$107,000
$87,000
Net income
32,000
26,000
24,000
Total current assets
145,000
152,000
120,000
Equity
238,000
255,000
268,000
It was discovered early in 2015 that the ending inventory on December 31, 2012, was overstated by $8,000 and the ending inventory on December 31, 2013, was understated by $3,500. The ending inventory on December 31, 2014, was correct. Ignoring income taxes, determine the correct amounts of cost of goods sold, net income, total current assets, and equity for each of the years 2012, 2013, and 2014.
2012:
Cost of goods sold =
Net income =
Total current assets =
Equity =
2013:
Cost of goods sold =
Net income =
Total current assets =
Equity =
2014:
Cost of goods sold =
Net income =
Total current assets =
Equity =
For the Year Ended December 31
2012
2013
2014
Cost of goods sold
Net income
Total current assets
Equity
For the Year Ended December 31
2012
2013
2014
Cost of goods sold
$95,000
$107,000
$87,000
Net income
32,000
26,000
24,000
Total current assets
145,000
152,000
120,000
Equity
238,000
255,000
268,000
Explanation / Answer
2012 Cost of goods sold = 95000+8000 = 103000 Net income = 32000-8000 = 24000 Total current assets = 145000-8000 = 137000 Equity = 238000-8000= 230000 2013 Cost of goods sold = 107000+8000+3500 = 118500 Net income = 26000+11500 = 37500 Total current assets = 152000+3500 = 155500 Equity = 255000+11500 = 266500 2014 Cost of goods sold = 87000-3500 = 83500 Net income = 24000-3500 = 20500 Total current assets 120000 Equity = 268000-3500 = 264500 For the Year Ended December 31 2012 2013 Cost of goods sold 103000 118500 83500 Net income 24000 37500 20500 Total current assets 137000 155500 120000 Equity 230000 266500 264500
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.