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.

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