What is the audited net sales balance?A. P 9,810,000B. P10,350,000C. P10,890,000D. P10,980,000 Grant Company presented to you the income statement in line with the same company's audit of thefinancial statements:Sales10,530,000(7,050,000)3,300,000(1,725,000)1,575,000Cost of Goods SoldGross ProfitOperating ExpensesNet IncomeYour audit revealed the following information:Accounts payable to suppliers of merchandise decreased by P412,500 during the year.Accounts receivable decreased by P540,000.Inventories decreased by P450,000.The amount operating expenses under accrual basis is same under cash basis.

Auditing refers to the art of inspecting and investigating financial accounts of a company. It is…

Grant Company presented to you the income statement in line with the same company's audit of the financial statements: Sales Cost of Goods Sold 10,530,000 Gross Profit Operating Expenses Net Income (7,050,000) 3,300,000 (1,725,000) 1,575,000 Your audit revealed the following information: • Accounts payable to suppliers of merchandise decreased by P412,500 during the year. Accounts receivable decreased by P540,000. Inventories decreased by P450,000. The amount operating expenses under accrual basis is same under cash basis.

Grant Company presented to you the income statement in line with the same company's audit of the financial statements: Sales Cost of Goods Sold 10,530,000 Gross Profit Operating Expenses Net Income (7,050,000) 3,300,000 (1,725,000) 1,575,000 Your audit revealed the following information: • Accounts payable to suppliers of merchandise decreased by P412,500 during the year. Accounts receivable decreased by P540,000. Inventories decreased by P450,000. The amount operating expenses under accrual basis is same under cash basis.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 12MCQ: Smoltz Company reported the following information for the current year: cost of goods sold,...

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Shetland Company reported net income on the year-end financial statements of $125,000. However, errors in inventory were discovered after the reports were issued. If inventory was understated by $15,000, how much net income did the company actually earn?
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Last year, Nikkola Company had net sales of 2,299,500,000 and cost of goods sold of 1,755,000,000. Nikkola had the following balances: Refer to the information for Nikkola Company above. Required: Note: Round answers to one decimal place. 1. Calculate the average inventory. 2. Calculate the inventory turnover ratio. 3. Calculate the inventory turnover in days. 4. CONCEPTUAL CONNECTION Based on these ratios, does Nikkola appear to be performing well or poorly?
Smoltz Company reported the following information for the current year: cost of goods sold, $252,500; increase in inventory, $21,700; and increase in accounts payable, $12,200. What is the amount of cash paid to suppliers that Smoltz would report on its statement of cash flows under the direct method? a. $218,600 c. $262,000 b. $243,000 d. $286,400
Gross Profit Shelly Corporation is an importer and wholesaler. Its merchandise is purchased from several suppliers and is warehoused by Shelly until sold to consumers. In conducting her audit for the year ended June 30, 2019, the corporations CPA determined that the system of internal control was good. Accordingly, she observed the physical inventory at an interim date, May 31, 2019, instead of at year-end. The CPA obtained the following information from the general ledger: The CPAs audit disclosed the following information: Required: In audit engagements in which interim physical inventories are observed, a frequently used auditing procedure is to test the reasonableness of the year-end inventory by the application of gross profit ratios. Prepare in good form the following schedules: 1. Computation of the gross profit ratio for 11 months ended May 31, 2019 2. Computation by the gross profit ratio method of cost of goods sold during June 2019 3. Computation by the gross profit ratio method of June 30, 2019 inventory
The following selected information is taken from the financial statements of Arnn Company for its most recent year of operations: During the year, Arnn had net sales of 2.45 million. The cost of goods sold was 1.3 million. Required: Note: Round all answers to two decimal places. 1. Compute the current ratio. 2. Compute the quick or acid-test ratio. 3. Compute the accounts receivable turnover ratio. 4. Compute the accounts receivable turnover in days. 5. Compute the inventory turnover ratio. 6. Compute the inventory turnover in days.
Analyzing the Accounts Casey Company uses a perpetual inventory system and engaged in the following transactions: a. Made credit sales of $825,000. The cost of the merchandise sold was $560,000. b. Collected accounts receivable in the amount of $752,600. c. Purchased goods on credit in the amount of $574,300. d. Paid accounts payable in the amount of $536,200. Required: Prepare the journal entries necessary to record the transactions. Indicate whether each transaction increased cash, decreased cash, or had no effect on cash.
Assuming a companys year-end inventory were understated by $16,000, indicate the effect (overstated/understated/no effect) of the error on the following balance sheet and income statement accounts. A. Income Statement: Cost of Goods Sold B. Income Statement: Net Income C. Balance Sheet: Assets D. Balance Sheet: Liabilities E. Balance Sheet: Equity
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