Charles Scrab Inc has beginning inventory of $15,000, purchases of $25,000, and ending inventory of

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Charles Scrab Inc has beginning inventory of $15,000, purchases of $25,000, and ending inventory of   $10,000, sales of $75,000, operating expenses of $30,000, and a tax rate of 40% for 2010.  An accounting  clerk input the ending inventory as $12,000.  What is the effect on 2011 net income?

 

 

A.  Net income for 2011 will be $1,200 higher than 2010.

B.  Net income for 2011 will be $1,200 lower than 2010.

C.  Net income for 2011 will be $10,200.

D.  Net income for 2011 cannot be calculated with the information given.

 

 

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    • 9 years ago
    Charles Scrab, Inc. -- A++ Correct w/ Solutions! USE it as a GUIDE
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