The statements of earnings for Pruitt Company summarized for a four-year period show the following (amounts...
The statements of earnings for Pruitt Company summarized for a four-year period show the following (amounts in thousands of dollars): Sales revenue Cost of sales 2018 2017 2016 2015 $3,625 $4,050 $4,300 $4,575 2,305 2,427 2,582 2,913 Gross profit Operating expenses 1,320 650 1,623 673 1,718 698 1,662 702 Pretax earnings Income tax expense (30%) 670 201 950 285 1,020 306 960 288 Net earnings $ 469 $ 665 $ 714 $ 672 An audit revealed that in determining these...
The income statement for Pruitt Company summarized for a four-year period shows the following: 2016 2017 2018 2019 Sales revenue $ 2,026,000 $ 2,452,000 $ 2,707,000 $ 2,994,000 Cost of goods sold 1,489,000 1,609,000 1,779,000 2,097,000 Gross profit 537,000 843,000 928,000 897,000 Expenses 472,000 495,000 527,000 526,000 Pretax income 65,000 348,000 401,000 371,000 Income tax expense (40%) 26,000 139,200 160,400 148,400 Net income $ 39,000 $ 208,800 $ 240,600 $ 222,600 An audit revealed that in determining these amounts, the...
The income statement for Pruitt Company summarized for a
four-year period shows the following:
[The following information applies to the questions displayed below) The income statement for Pruitt Company summarized for a four-year period shows the following: 2017 2016 2018 2019 2,028,000 2,460.000 2,712,000 2,983,000 Sales revenue Cost of goods sold 1,486,000 1,616,000 1,766,000 2,094,000 542,000 889,000 Gross profit 844,000 946,000 532,000 Expenses 470,000 495,000 525,000 414,000 364,000 Pretax income 72,000 349.000 127,400 25,200 122150 144,900 46,800 226,850 226,850 236.600...
Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $1,500,000 1,125,000 $ 375,000 2016 $1,900,000 1,406,000 $ 494,000 2017 $2,000,000 1,520,000 $ 480,000 2018 $2,500,000 1,875,000 $ 625,000 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $15,000 on December 31, 2017, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial income statements...
QUESTION
1. Prepare the income statements to reflect the
correct amounts, taking into consideration the inventory error.
2. Compute the gross profit percentage for each
year before the correction and after the correction. (Round
your answers to the nearest whole percent.)
3. What effect would the error have had on the
income tax expense assuming a 30 percent average rate?
Required information (The following information applies to the questions displayed below.) The income statement for Pruitt Company summarized for a...
Partial income statements for Sherwood Company summarized for a four-year period show the following: 2015 2016 2017 2018 Net Sales $ 2,500,000 $ 2,900,000 $ 3,000,000 $ 3,500,000 Cost of Goods Sold 1,625,000 1,856,000 1,980,000 2,275,000 Gross Profit $ 875,000 $ 1,044,000 $ 1,020,000 $ 1,225,000 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $25,000. The inventory balance on December 31, 2017, was accurately stated. The company uses a periodic inventory system....
Partial income statements for Sherwood Company summarized for a four-year period show the following: Net Sales Cost of Goods Sold Gross Profit 2015 $2,200,000 1,496,000 $ 704,000 2016 $2,600,000 1,742,00 $ 858,000 1 2017 $2,700,000 ,863,eee $837,000 2018 $3,200,000 2,176,000 $1,024,000 An audit revealed that in determining these amounts, the ending inventory for 2016 was overstated by $22.000. The inventory balance on December 31, 2017, was accurately stated. The company uses a periodic inventory system. Required: 1. Restate the partial...
The following information is available for Amos Company for the year ended December 31, 2017 a. Balance of retained earnings, December 31, 2016, prior to discovery of error, $867,000 b. Cash dividends declared and paid during 2017, $25,00o. c. It neglected to record 2015 depreciation expense of $46,600, which is net of $5,500 in tax benefits. d. The company earned $212,000 in 2017 net income Prepare a 2017 statement of retained earnings for Amos Company. (Amounts to be deducted should...
Pro Forma Income Statements Presented below is the consolidated statement of earnings for Mann & Miller, Inc. Mann & Miller, Inc. Consolidated Statement of Earnings ($ millions) 2015 2014 2013 Sales of customers $35,980 $32,317 $29,172 Cost of goods sold 9,745 9,581 8,957 Gross profit 26,235 22,736 20,215 Selling, marketing & administrative expense 12,216 11,260 10,495 Research expense 3,957 3,591 3,105 Purchased in-process research & development 189 105 66 Interest income (256) (456) (429) Interest expense, net of portion capitalized...
The following information is available for Amos Company for the year ended December 31, 2017. Balance of retained earnings, December 31, 2016, prior to discovery of error, $858,000. Cash dividends declared and paid during 2017, $22,000. It neglected to record 2015 depreciation expense of $45,600, which is net of $5,900 in tax benefits. The company earned $219,000 in 2017 net income. Prepare a 2017 statement of retained earnings for Amos Company. (Amounts to be deducted should be indicated with a...