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Charles Scrab Inc has beginning inventory of $15,000, purchases of $25,000, and ending inventory of

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Charles Scrab Inc has beginning inventory of $15,000, purchases of $25,000, and ending inventory of $10,000, sales of $75,000, operating expenses of $30,000, and a tax rate of 40% for 2010. An accounting clerk input the ending inventory as $12,000. What is the effect on 2011 net income?;A. Net income for 2011 will be $1,200 higher than 2010.;B. Net income for 2011 will be $1,200 lower than 2010.;C. Net income for 2011 will be $10,200.;D. Net income for 2011 cannot be calculated with the information given.;Show computations for the answers.

 

Paper#76446 | Written in 18-Jul-2015

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