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:

Statements Of Opinion

Expressions that reflect personal beliefs, feelings, or judgments, rather than objective facts.

Deceptive

Intended to mislead or trick someone, often by presenting false information as true.

Essential Element

A fundamental or critical component necessary for something's existence or functionality.

Persuasion

The act of convincing someone to do something or to adopt a certain viewpoint.