Sheridan Inc. reported total assets of $6408000 and net income of $503000 for the current year. Sheridan determined that inventory was understated by $137000 at the beginning of the year and $58700 at the end of the year. Ignoring income taxes, what is the corrected amount for total assets and net income for the year

Question

Lexie Sandoval

Business

4 October, 16:26

Sheridan Inc. reported total assets of $6408000 and net income of $503000 for the current year. Sheridan determined that inventory was understated by $137000 at the beginning of the year and $58700 at the end of the year. Ignoring income taxes, what is the corrected amount for total assets and net income for the year

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Sophia · Answer 1

Solution:

Given,

Total assets = $6408000

Net income = $503000

Now, to calculate corrected amount for total assets and net income for the year:

503000 + 137000 = 640,000

The corrected amount for total assets and net income for the year : 640,000