Attached is a schedule of five proposed changes at the end of the year. Before the After the Change $18,800,000 (a) $200,000 $19,000,000 Change Proposed Change. 13,200,000 (b) 400,000 13,600,000 1,600,000 (c) (100,000) 1,500,000 500,000 (d) 450,000 (e) ($ in 000's) Net sales. Cost of goods sold Operating expenses Other revenue Other expense Net income. Net sales Cost of goods sold Operating expenses $4,050,000 Other revenue Other expense Total effect 50,000 (50,000) Required: 1. & 2. Select whether each of the proposed changes and the total effect of all the changes are conservative, aggressive, or neutral. 550,000 400,000 $4,050,000
Attached is a schedule of five proposed changes at the end of the year. Before the After the Change $18,800,000 (a) $200,000 $19,000,000 Change Proposed Change. 13,200,000 (b) 400,000 13,600,000 1,600,000 (c) (100,000) 1,500,000 500,000 (d) 450,000 (e) ($ in 000's) Net sales. Cost of goods sold Operating expenses Other revenue Other expense Net income. Net sales Cost of goods sold Operating expenses $4,050,000 Other revenue Other expense Total effect 50,000 (50,000) Required: 1. & 2. Select whether each of the proposed changes and the total effect of all the changes are conservative, aggressive, or neutral. 550,000 400,000 $4,050,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Attached is a schedule of five proposed changes at the end of the year.
Before the
Change
After the
Change
$18,800,000 (a) $200,000 $19,000,000
Proposed Change
400,000
13,600,000
13,200,000 (b)
1,600,000 (c)
(100,000)
1,500,000
($ in 000's)
Net sales
Cost of goods sold.
Operating expenses
Other revenue
Other expense
Net income
500,000 (d)
450,000 (e)
Net sales
Cost of goods sold
Operating expenses
Other revenue
Other expense
Total effect
$4,050,000
50,000
(50,000)
550,000
400,000
$4,050,000
Required:
1. & 2. Select whether each of the proposed changes and the total effect of all the changes are conservative, aggressive, or neutral.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education