Sheffield Inc. reported the following partial statement of income data for the years ended December 31, 2024 and 2023:SalesCost of goods soldGross profit(a)The company reported inventory in the statement of financial position at $46,000, $49,500, and $48,000 at the end of 2022, 2023,and 2024, respectively. The ending inventory amounts for 2022 and 2024 are correct. However, the company has understated theending inventory at December 31, 2023, by $7,620.Sales2024$263,000Cost of goods sold204,000$59,000Your answer has been saved. See score details after the due date.Prepare correct statements of income for 2023 and 2024 through to gross profit.2024Gross profit(b)2023$254,000199,390$54,610$eTextbook and Media26300021162051380$$2023Cumulative effect of the inventory error on total gross profit $25400019177062230Attempts: 1 of 1 usedWhat is the cumulative effect of the inventory error on total gross profit for these two years? (If answer is zero, please enter 0, donot leave any fields blank.)

The objective of the question is to correct the statements of income for the years 2023 and 2024 and…

Answered: Sheffield Inc. reported the following…

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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Masthead Company's comparative balance sheets included an inventory of $180,400 at December 31, 2009, and $241,200 at December 31, 2010. Masthead's comparative balance sheets also included accounts payable of $85,400 at December 31, 2009, and $78,400 at December 31, 2010. Masthead's accounts payable balances are composed solely of amounts due to suppliers for purchases of inventory on account. Cost of goods sold, as reported by Masthead on its 2010 income statement, amounted to $1,200,000. What is the amount of cash payments for inventory that Masthead will report in the Operating Activities category of its 2010 statement of cash flows assuming that the direct method is used?
d. Kroger reported net earnings of $1,728 million in its fiscal year 2014 income statement. Assuming a 35% tax rate, what amount of net earnings would Kroger report if the company used the FIFO inventory costing method?
G
Whispering Winds Supply Company reports net income of $141,600 in 2023. The ending inventory did not include goods valued at $10,620 that Whispering Winds Supply had consigned to Staples. (For question answer please scroll far right) (1) What impact will this error have on the income statement for 2023? If ending inventory is ✓by $ (2) (3) What is the correct net income for 2023? The correct net income is $ 2 On the balance sheet, both inventory and retained earnings will be cost of goods sold will be What impact will this error have on the balance sheet at December 31, 2023? by $ and net
A physical inventory count showed ABC Company had inventorycosting $428,000 on hand at December 31, 2025. This amountdid not include the following:1. Inventory costing $39,000 that was shipped to acustomer FOB shipping point on December 30, 2025.The inventory was expected to be received by thecustomer on January 3, 2026.2. Inventory costing $17,000 that was shipped to acustomer FOB destination point on December 29, 2025.The inventory was expected to be received by thecustomer on January 6, 2026.3. Inventory costing $26,000 that ABC Company hadpurchased from one of its suppliers. The goodswere shipped to ABC Company on December 31, 2025.ABC Company expects to receive the inventory onJanuary 4, 2026. The shipping terms were FOBshipping point.Calculate the correct dollar amount of ending inventoryto be reported on ABC Company’s December 31, 2025 balancesheet.
In its 2016 income statement, Hendrickson Company reported cost of goods sold of $340,000. Later, Hendrickson determined that beginning inventory for 2016 was understated by $92,000, and the ending inventory for 2016 was understated by $40,000. What should be the corrected amount for cost of goods sold for 2016? A) $340,000 B) $392,000 C) $288,000 D) $380,000
Waterway Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $211,257,900 at both cost and realizable value. At December 31, 2020, the inventory was $286,249,300 at cost and $262,969,900 at realizable value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method.
The following information is available for Sandhill Co. for three recent fiscal years. 2017 2016 2015 Inventory $562,019 $571,288 $327,592 Net sales 1,955,632 1,697,750 1,304,721 Cost of goods sold 1,522,434 1,280,731 939,086 Calculate the inventory turnover, days in inventory, and gross profit rate for 2017 and 2016. (Round inventory turnover to 1 decimal place, e.g. 5.2, days in inventory to 0 decimal places, e.g. 125 and gross profit rate to 1 decimal place, e.g. 5.2%.) 2017 2016 Inventory Turnover times times Days in Inventory days days Gross Profit Rate % %
In its 2019 annual report, Kingbird, Inc. reported inventory of $ 626 million on January 31, 2020, and $ 540 million on January 31, 2019, cost of goods sold of $ 5,746 million for the year, and net sales of $ 7,184 million for the year. Compute Kingbird's inventory turnover for the fiscal year 2019. (Round answer to 2 decimal places, e.g. 7.62.) Inventory turnover times Compute Kingbird's average days to sell inventory for the fiscal year 2019. (Round answer to 2 decimal place, e.g. 7.65. Use 365 days for calculation.) Average days to sell inventory days
Swifty Enterprises reported cost of goods sold for 2025 of $1,453, 700 and retained earnings of $5,392, 600 at December 31, 2025. Swifty later discovered that its ending inventories at December 31, 2024 and 2025, were overstated by $102, 820 and $37,880, respectively. Determine the corrected amounts for 2025 cost of goods sold and December 31, 2025, retained earnings. Corrected cost of goods sold $enter a dollar amount Corrected 12/31/25 retained earnings $enter a dollar amount
The management of Oriole Company asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2017, the accounting records show these data. Inventory, January 1 (9,220 units) $ 31,348 Cost of 131,450 units purchased 501,454 Selling price of 95,340 units sold 745,200 Operating expenses 120,500 Units purchased consisted of 37,740 units at $3.60 on May 10; 62,070 units at $3.80 on August 15; and 31,640 units at $4.10 on November 20. Income taxes are 26%.(a) Prepare comparative condensed income statements for 2017 under FIFO and LIFO. (Round answers to 0 decimal places, e.g. 5,125.) Oriole CompanyCondensed Income Statements FIFO LIFO $ $ $ $

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