a. $22,000 b. $18,000 c. $20,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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a. $22,000
b. $18,000
c. $20,000
d. None of them

Chyna Corporation has the following statement of comprehensive income for the year ended December 31, 2017:
Sales revenue
$100,000
Cost of goods sold:
Beginning inventory
$12,000
Purchases (net)
48,000
Cost of goods available for sale $60,000
Cost of ending inventory
12,000
Cost of goods sold
48,000
Gross margin
$52,000
Expenses
30,000
Net income
$22,000
Given this information, if ending inventory was $10,000 instead of $12,000, net income would be
Transcribed Image Text:Chyna Corporation has the following statement of comprehensive income for the year ended December 31, 2017: Sales revenue $100,000 Cost of goods sold: Beginning inventory $12,000 Purchases (net) 48,000 Cost of goods available for sale $60,000 Cost of ending inventory 12,000 Cost of goods sold 48,000 Gross margin $52,000 Expenses 30,000 Net income $22,000 Given this information, if ending inventory was $10,000 instead of $12,000, net income would be
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