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CP 6-6

18 August, 2015 - 11:04

Partial income statements of Lilydale Products Inc. are reproduced below:

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Required:

  1. Calculate the impact of the two errors listed below on the gross profit calculated for the three years:
    1. The 2017 ending inventory was understated by $2,000.
    2. The 2019 ending inventory was overstated by $5,000.
  2. What is the impact of these errors on total assets?