Hull Company reported the following income statement information for the current year:Sales$429,000Cost of goods sold:$160,500Beginning inventoryCost of goods purchased292,000Cost of goods available for saleEnding inventory452,500163,000Cost of goods sold289,500Gross profit$139,500The beginning inventory balance is correct. However, the ending inventory figure was overstated by $39,000. Given this information, the correct gross profit would be:Multiple Choice$100,500.$139,500.$178,500.$113,500.< Prev39 of 60Next >

Computation of the correct gross profit is as follows:

Hull Company reported the following income statement information for the current year: Sales $429,000 goods sold: Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Cost $160,500 292,000 452,500 163,000 289,500 Gross profit $139,500 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $39,000. Given this information, the correct gross profit wouid be: Multiple Choice $100,500. $139,500. $178,500. $113,500. < Prev 39 of 60 Next >

Hull Company reported the following income statement information for the current year: Sales $429,000 goods sold: Beginning inventory Cost of goods purchased Cost of goods available for sale Ending inventory Cost of goods sold Cost $160,500 292,000 452,500 163,000 289,500 Gross profit $139,500 The beginning inventory balance is correct. However, the ending inventory figure was overstated by $39,000. Given this information, the correct gross profit wouid be: Multiple Choice $100,500. $139,500. $178,500. $113,500. < Prev 39 of 60 Next >

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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