Q 8.28: the net income for tina's company for the current year was $255,000, while the total assets reported were $3,200,000. at the beginning of that year, the inventory was understated by $69,000, and at the end of the year it was understated by $30,000. the correct amount for total assets and net income for the year is
Cost of goods sold = beginning inventory + purchases - ending inventory Cost of goods sold = -69,000 + purchases - (-30,000) Cost of goods sold = -39,000
Subtract cost of goods sold that is understated 39,000 by 255,000. Net income = $216,000
Since the beginning inventory is understated by $30,000 the total assets are. Total assets = $3,230,000
