Oakley Supply Company reports net income of $120,000 in 2010. The ending inventory did not include goods valued at $5,000 that Oakley had consigned to Roberta's Gift Shop.
(1) What is the correct net income for 2010?
(2) What impact will this error have on the balance sheet at 12/31/10?

Question

Quizplus · Accepted Answer

The Answer of Oakley Supply Company reports net income of $120,000 in 2010. The ending inventory did not include goods valued at $5,000 that Oakley had consigned to Roberta's Gift Shop.
(1) What is the correct net income for 2010?
(2) What impact will this error have on the balance sheet at 12/31/10?

Oakley Supply Company Reports Net Income of $120,000 in 2010