Concord, Inc. has had some turnover in its parts inventory area. As a result, some inventory counting errors have beenmade in taking the physical ending inventory in the last two fiscal years. Its financial statements for the years 2026 and2025 contained errors as follows:Ending inventoryFiscal 2026$2000 understated$16600 overstated$2000 understated$18600 understatedO $2000 overstatedооFiscal 2025Concord has a 9/30 fiscal year-end. Assume that no correcting entries were made and that no additional errorsoccurred in fiscal 2027. Ignoring income taxes, by how much will working capital be overstated or understated at9/30/26?$16600 overstated

Working capital= Current asset-current liabilitiesCurrent assets are cash and cash equivalents and…

Concord, Inc. has had some turnover in its parts inventory area. As a result, some inventory counting errors have been made in taking the physical ending inventory in the last two fiscal years. Its financial statements for the years 2026 and 2025 contained errors as follows: Ending inventory Fiscal 2026 $2000 understated Fiscal 2025 O $16600 overstated O $2000 understated $18600 understated O $2000 overstated $16600 overstated Concord has a 9/30 fiscal year-end. Assume that no correcting entries were made and that no additional errors occurred in fiscal 2027. Ignoring income taxes, by how much will working capital be overstated or understated at 9/30/26?

Concord, Inc. has had some turnover in its parts inventory area. As a result, some inventory counting errors have been made in taking the physical ending inventory in the last two fiscal years. Its financial statements for the years 2026 and 2025 contained errors as follows: Ending inventory Fiscal 2026 $2000 understated Fiscal 2025 O $16600 overstated O $2000 understated $18600 understated O $2000 overstated $16600 overstated Concord has a 9/30 fiscal year-end. Assume that no correcting entries were made and that no additional errors occurred in fiscal 2027. Ignoring income taxes, by how much will working capital be overstated or understated at 9/30/26?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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