Hull Company Reported the Following Income Statement Information for the Current

question 141

Multiple Choice

Hull Company reported the following income statement information for the current year: 35
$\begin{array}{|l|l|}\hline & \\\hline \text { Sales } & \$ 410,000 \\\hline \text { Cost of goods sold: } & \\\hline \text { Beginning inventory } & \$ 132,000 \\\hline\end{array}$

$\begin{array}{|l|r|}\hline \text { Beginning inventory } & \$ 132,000 \\\hline \text { Cost of goods purchased } & \underline{273,000} \\\hline \begin{array}{l}\text { Cost of goods available } \\\text { for sale }\end{array} & 405,000 \\\hline \text { Ending inventory } & \underline{144,000} \\\hline \text { Cost of goods sold } & \underline{261,000} \\\hline \text { Gross profit } & \$ 149,000 \\\hline\end{array}$ The beginning inventory balance is correct. However, the ending inventory figure was overstated by
$20,000. Given this information, the correct gross profit would be:

• A)$149,000.
• B)$142,000.
• C)$129,000.
• D)$112,000.
• E)$169,000.

---

Definitions:

No More Tact

This phrase suggests a direct or blunt approach, potentially without regard for diplomacy or subtlety in communication.

Conceptual Skill

The ability to understand complex ideas and to apply strategic thinking and planning in organizational contexts.

Through Other People

A method or strategy of achieving goals, conducting business, or reaching an audience indirectly by leveraging relationships or networks of others.

Increase Sales

The process of enhancing the volume of products sold or services rendered in a business to boost revenue.