Hawaii T-Shirt Company reported the following financial information for fiscal years 2019 and 2020. Twelve months ended March 31 2019 2020 Beginning inventory 31,000 27,000 Plus: Purchases 185,000 188,000 Goods available for sale 216,000 215,000 Less: Ending inventory 27,000 30,000 Cost of goods sold 189,000 185,000 The company's controller just discovered that ending inventory for 2019 should have been $32,000 instead of $27,000. Once the error is corrected what will be the restated cost of goods sold figure for 2019? Once the error is corrected what will be the restated cost of goods sold figure for 2020? . Was net income in 2019 overstated, understated or not affected by the inventory error? Was net income in 2020 overstated, understated or not affected by the inventory error?
Hawaii T-Shirt Company reported the following financial information for fiscal years 2019 and 2020. Twelve months ended March 31 2019 2020 Beginning inventory 31,000 27,000 Plus: Purchases 185,000 188,000 Goods available for sale 216,000 215,000 Less: Ending inventory 27,000 30,000 Cost of goods sold 189,000 185,000 The company's controller just discovered that ending inventory for 2019 should have been $32,000 instead of $27,000. Once the error is corrected what will be the restated cost of goods sold figure for 2019? Once the error is corrected what will be the restated cost of goods sold figure for 2020? . Was net income in 2019 overstated, understated or not affected by the inventory error? Was net income in 2020 overstated, understated or not affected by the inventory error?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Hawaii T-Shirt Company reported the following financial information for fiscal years 2019 and 2020.
| Twelve months ended March 31 | ||
| 2019 | 2020 | |
| Beginning inventory | 31,000 | 27,000 |
| Plus: Purchases | 185,000 | 188,000 |
| Goods available for sale | 216,000 | 215,000 |
| Less: Ending inventory | 27,000 | 30,000 |
| Cost of goods sold | 189,000 | 185,000 |
The company's controller just discovered that ending inventory for 2019 should have been $32,000 instead of $27,000.
- Once the error is corrected what will be the restated cost of goods sold figure for 2019?
- Once the error is corrected what will be the restated cost of goods sold figure for 2020? .
- Was net income in 2019 overstated, understated or not affected by the inventory error?
- Was net income in 2020 overstated, understated or not affected by the inventory error?
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