Question

Concord Inc. reported total assets of $6399000 and net income of $503000 for the current year. Concord determined that inventory was understated by $137000 at the beginning of the year and $60900 at the end of the year. Ignoring income taxes, what is the corrected amount for total assets and net income for the year

Answer 1

TOTAL ASSETS$6,459,900

NET INCOME $426,900

Step-by-step explanation:

Calculation for the corrected amount for total assets and net income for the year

Calculation for TOTAL ASSETS

Total assets $6,399,000

Add Ending understated inventory $60,900

TOTAL ASSETS$6,459,900

Calculation for NET INCOME

Net income of $503,000

Less Begining understated inventory ($137,000)

Add Ending understated inventory $60,900

NET INCOME $426,900

Therefore the corrected amount for total assets will be $6,459,900 and net income for the year will be $426,900