Condensed Income Statements for Werly Corporation Are Shown Below for Two

question 61

Short Answer

Condensed income statements for Werly Corporation are shown below for two years. Compute the corrected net income for 2013 and 2014 assuming that the inventory as of the end of 2013 was mistakenly overstated by $5,000.
2013 $ __________ 2014 $__________

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Definitions:

Prices

The amount of money required to purchase goods or services, serving as the consideration for the value of the goods or services being exchanged.

Supply and Demand

Supply and demand is a fundamental economic model that explains the interaction between the sellers of a resource and the buyers for that resource, determining its price and quantity in a market.

Allocation of Resources

The process of assigning available resources, or factors of production, to specific uses chosen among many possible and competing alternatives.

Productivity

The assessment of how effectively a person, machine, factory, or system can transform inputs into valuable outputs.