Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. branson electric prepared the following condensed

Branson Electric prepared the following condensed income statements for two successive years. 2021 2020 Sales...

80.2K

Verified Solution

Question

Accounting

Branson Electric prepared the following condensed income statements for two successive years. 2021 2020 Sales $ 4,000,000 $ 3,950,000 Cost of goods sold 1,050,000 800,000 Gross profit on sales $ 2,950,000 $ 3,150,000 Operating expenses 400,000 300,000 Net income $ 2,550,000 $ 2,850,000 At the end of 2020 (right-hand column), the inventory was understated by $28,000, but the error was not discovered until after the accounts had been closed and financial statements prepared at the end of 2021. The balance sheets for the two years showed owners equity of $550,000 at the end of 2020 and $355,000 at the end of 2021. (Branson is organized as a sole proprietorship and does not incur income taxes expense.) a. Compute the corrected net income figures for 2020 and 2021. b. Compute the gross profit amounts and the gross profit percentages for each year on the basis of corrected data. (Round "Gross

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

The business faculty of a public university recorded data on the number of students enrolled in...

General Management
1.2K views

The Nature and scope of Human Resource Planning is significantly different from that of the Traditional...

Biology
1.2K views

Figure 4 Oldest Youngest Relative age of Figure 4 rocks oldest to youngest C D...

Physics
1.2K views

0 A charge q is lying at mid point of the line joining the two...

Basic Math
1.2K views

Graph the equation using any method y 2x 1 O No Solution 5

Calculus
1.2K views

K The graph of a linear function f is shown a Identify the slope y...

Accounting
1.2K views

ACC 211 bought furniture for 6,000. The furniture has a useful life of 5 years...

Accounting
1.2K views

Due to erratic sales of its sole producta high-capacity battery for laptop computersPEM, Incorporated, has...

Accounting
1.2K views

Question 11 (1 point) Saved ...

Accounting
1.2K views

Pitman Company is small but growing manufacturer of telecommunications equipment. The company has no sales...

Accounting
1.2K views

Price and cost information relating to Marble, Ltd's only product is shown below: Selling price...

Accounting
1.2K views

37. How often must employers deposit federal payroll taxes with the IRS? a)....