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 Gross profit Operating expenses Pretax earnings Income tax expense (30%) Net earnings Sales revenue Cost of sales Gross profit 2023 2022 2024 $3,325 $3,750 $4,000 2,155 2,277 2,432 1,170 1,473 1,568 620 643 668 550 830 900 165 249 270 $ 385 $ 581 $ 630 Operating expenses Pretax earnings Income tax expense Net earnings An audit revealed that in determining these amounts, the ending inventory for 2022 was understated by $48. Required: 1. Revise these statements of earnings to reflect the correct amounts. (Do not round intermediate calculations. Round the final answers to the nearest dollar amount.) PRUITT COMPANY Corrected Statement of Earnings 2024 2023 2021 $4,275 2,763 1,512 2022 672 840 252 $ 588 2021
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 Gross profit Operating expenses Pretax earnings Income tax expense (30%) Net earnings Sales revenue Cost of sales Gross profit 2023 2022 2024 $3,325 $3,750 $4,000 2,155 2,277 2,432 1,170 1,473 1,568 620 643 668 550 830 900 165 249 270 $ 385 $ 581 $ 630 Operating expenses Pretax earnings Income tax expense Net earnings An audit revealed that in determining these amounts, the ending inventory for 2022 was understated by $48. Required: 1. Revise these statements of earnings to reflect the correct amounts. (Do not round intermediate calculations. Round the final answers to the nearest dollar amount.) PRUITT COMPANY Corrected Statement of Earnings 2024 2023 2021 $4,275 2,763 1,512 2022 672 840 252 $ 588 2021
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.8E: Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of...
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