Hull Company Reported the Following Income Statement Information for the Current

question 59

Multiple Choice

Hull Company reported the following income statement information for the current year:
$$\begin{array} { | l | r | } \hline & \\\hline \text { Sales } & \$ 410,000 \\\hline \text { Cost of goods sold: } & \\\hline \text { Beginning inventory } & \$ 132,000 \\\hline \text { Cost of goods purchased } & \underline { 273,000 } \\\hline \text { Cost of goods available for sale } & 405,000 \\\hline \text { Ending inventory } & 144,000 \\\hline \text { Cost of goods sold } & \underline { 261,000 } \\\hline \text { Gross profit } & \$ 149,000 \\\hline\end{array}$$
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) $169,000.
• C) $129,000.
• D) $142,000.
• E) $112,000.

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Definitions:

Government Expenditures

Total spending by the government on goods, services, and public projects, including salaries of public servants, social programs, and infrastructure projects.

Distortions

Refers to alterations or imperfections in economic market conditions that lead to inefficient resource allocation and outcomes.

Consumption

Spending by households on goods and services, with the exception of purchases of new housing.

Money Balances

The total amount of money held by individuals or entities in the form of cash or bank deposits.