Slowinski Corporation reported net income of $425,000 for the current year.After the financial statements had been prepared,it was discovered that ending inventory had been overstated by $25,000 and beginning inventory was understated by $1,000.The correct net income was:

Question

Quizplus · Accepted Answer

The overstatement of ending inventory reduces net income by $25,000, while the understatement of beginning inventory increases net income by $1,000. Therefore, the correct net income is $425,000 - $25,000 + $1,000 = $401,000.

Slowinski Corporation Reported Net Income of $425,000 for the Current