Use the following information for the next three (3) questions: Silhouette Corporation reported profit for the year 2014 and 2015 at P550,000 and P700,000, respectively. Your audit of the company’s account disclosed the need for adjustments as follows:                                                                                                       2014 2015 Overstatement of ending inventory due to error in pricing 29,000 33,000 Omission of depreciation on newly-acquired equipment 15,000 15,000 Understatement of commission receivable 22,000 18,000 A purchase of merchandise was not recorded until the following year, and also was not included in the ending inventory   60,000   33) The adjusted profit for 2015 was 34) What is the effect of the foregoing errors (overstatement) on total assets at December 31, 2015? 35) What is the effect on the foregoing errors on retained earnings at December 31, 2014?

Calculate the inventory turnover, days sales outstanding (DSO), fixed assets turnover, and total assets turnover. Has the company’s ability to manage its assets improved or worsened? Explain.      A computer manufacturer has financial statements as follows: Income Statements for Year Ending December 31  (Thousands of Dollars)     2019 2018 Sales       $945,000 $900,000 Expenses excluding depreciation and amortization 812,700 774,000   EBITDA       $132,300 $126,000 Depreciation and amortization   33,100 31,500   EBIT       $99,200 $94,500 Interest Expense     10,470 8,600   EBT       $88,730 $85,900 Taxes (25%)       22,183 21,475   Net income       $66,547 $64,425             Common dividends     $56,609 $54,115 Addition to retained earnings   $9,938 $10,310             Balance Sheets for Year Ending December 31     (Thousands of Dollars)         Assets       2019…

Koopman Company began operations on January 1, 2015, and uses the FIFO inventory method for financial reporting and the average cost inventory method for income taxes. At the beginning of 2017, Koopman decided to switch to the average cost inventory method for financial reporting. It had previously reported the following financial statement information for 2016:   KOOPMAN COMPANY Income Statement For the Year Ended December 31, 2016 1 Revenues $100,000.00 2 Cost of goods sold (60,000.00) 3 Gross profit $40,000.00 4 Operating expenses (25,000.00) 5 Income before income taxes $15,000.00 6 Income tax expense (4,500.00) 7 Net income $10,500.00 8 Earnings per share $1.05         KOOPMAN COMPANY Retained Earnings Statements For Year Ended December 31, 2016 1 Beginning retained earnings $15,000.00 2 Add: Net income 10,500.00 3   $25,500.00 4 Less:…

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In 2016, the internal auditors of Development Technologies, Inc. discovered that a $4 million purchase of merchandise in 2016 was recorded in 2015 instead. The physical inventory count at the end of 2015 was correct. Required: Prepare the journal entry needed in 2016 to correct the error. Also, briefly describe any other measures Development Technologies would take in connection with correcting the error. (Ignore income taxes.)

Ignoring income taxes, what is the total effect of the errors on the beginning balance of retained earnings for the year 2023? ( Leave the numerical figure positive, put a dash then identify if OVERSTATED or UNDERSTATED, example: 25000-OVERSTATED)

Malcolm Lee Industries reported the following amounts in its December 31st financial statements: 2023 $270,500 55,400 Cost of Goods sold Ending Inventory Errors were made in each year as follows: in 2023, ending inventory was overstated by $10,500 while in 2024, ending inventory was understated by $6,800. Explain the impact of these errors for 2024 profit and owners' equity. Profits will be Owners' equity will be 2024 $287,700 55,400 by $ by $

(Error Corrections) You have been assigned to examine the financial statements of Zarle Company for the year ended December 31, 2017. You discover the following situations.1. Depreciation of $3,200 for 2017 on delivery vehicles was not recorded.2. The physical inventory count on December 31, 2016, improperly excluded merchandise costing $19,000 that had been temporarily stored in a public warehouse. Zarle uses a periodic inventory system.3. A collection of $5,600 on account from a customer received on December 31, 2017, was not recorded until January 2, 2018.4. In 2017, the company sold for $3,700 fully depreciated equipment that originally cost $25,000. The company credited the proceeds from the sale to the Equipment account.5. During November 2017, a competitor company filed a patent-infringement suit against Zarle claiming damages of $220,000. The company’s legal counsel has indicated that an unfavorable verdict is probable and a reasonable estimate of the court’s award to the…

6. You wil PROBLEM: Net income for Victory Company for the years 2021 and 2022 is shown below. An audit of the accounts, however, disclosed the following errors: 2021 2022 Net income after income tax 246,500 312.500 Understatement of year-end inventory 25.000 Purchase of computer at year cnd charged to expense. The estimated useful life is 10 years. 40,000 Credit purchases of merchandise not recorded but included in the physical count at year end 50,000 Rent received in advance and credited to incomne 18.000 Unrecorded unpaid taxes at year-end, 20.000 QUESTIONS: 1. What is the correct net income for the year 2021? 2. What is the correct net income for the year 2022?

During 2011, Paul discovered that the ending inventories reported on its financial statements were incorrect by the following amounts:                             2009   P60,000 understated;                 2010 P75,000 overstated.  Paul uses the periodic inventory system to ascertain year-end quantities that are converted to peso amounts using the FIFO cost method.  Prior to any adjustments for these errors and ignoring income tax, Paul’s retained earnings at January 1, 2011 would be     Choices; Correct 15,000 overstated 75,000 overstated 135,000 overstated