Complete this question by entering your answers in the tabs below.Required 1Required 2Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction. Does thepattern of gross profit percentages lend confidence to your corrected amounts? TIP: Gross profit percentage is calculated as(Gross Profit + Net Sales) x 100. (Round your answers to the nearest whole percent.)Quarter 1Quarter 2Quarter 3Quarter 4|%|%|%%Before Correction%After Correction%%Does the pattern of gross profit percentages lend confidence to your corrected amounts? Partial income statements for Murphy & Murphy (M & M) reported the following summarized amounts:Quarter 1$100,000Quarter 2$99,00079,200Quarter 3$120,000Quarter 4$108,00079,920Net SalesCost of Goods Sold75,000$ 25,00085,050Gross Profit$19,800$ 34,950$ 28,080After these amounts were reported, M & M's accountant determined the inventory at the end of Quarter 2 was understated by $4,950.The inventory balance at the end of the other three quarters was accurately stated.Required:1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error.2. Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction. Does the patternof gross profit percentages lend confidence to your corrected amounts? TIP: Gross profit percentage is calculated as (Gross Profit +Net Sales) x 100.

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Description: Complete this question by entering your answers in the tabs below.Required 1Required 2Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction. Does thepattern of gross profit percentages

Financial statements are the reports that depict the financial performance of an entity. It consists…

Business

Accounting

Partial income statements for Murphy & Murphy (M & M) reported the following summarized amounts: Quarter $100,000 Quarter 2 $99,000 79,200 Quarter 3 $120,000 85,050 $ 34,950 Quarter 4 $108,000 79,920 Net Sales 75,000 $ 25,000 Cost of Goods Sold Gross Profit $19,800 $ 28,080 After these amounts were reported, M & M's accountant determined the inventory at the end of Quarter 2 was understated by $4,950. The inventory balance at the end of the other three quarters was accurately stated. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2. Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction. Does the pattern of gross profit percentages lend confidence to your corrected amounts? TIP: Gross profit percentage is calculated as (Gross Profit + Net Sales) x 100.

Partial income statements for Murphy & Murphy (M & M) reported the following summarized amounts: Quarter $100,000 Quarter 2 $99,000 79,200 Quarter 3 $120,000 85,050 $ 34,950 Quarter 4 $108,000 79,920 Net Sales 75,000 $ 25,000 Cost of Goods Sold Gross Profit $19,800 $ 28,080 After these amounts were reported, M & M's accountant determined the inventory at the end of Quarter 2 was understated by $4,950. The inventory balance at the end of the other three quarters was accurately stated. Required: 1. Restate the partial income statements to reflect the correct amounts, after fixing the inventory error. 2. Compute the gross profit percentage for all four quarters both (a) before the correction and (b) after the correction. Does the pattern of gross profit percentages lend confidence to your corrected amounts? TIP: Gross profit percentage is calculated as (Gross Profit + Net Sales) x 100.

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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