Question Details

The average days to sell inventory for Bosio 


1.	At December 31, 2011, Daewoo Inc. reported total assets of W201,295,000, and net income of W50,335,000 for the current year. Daewoo determined that inventory was overstated by W1,600,000 at the beginning of 2012 (this was not corrected). What is Daewoo- corrected amount for total assets for 2011?
a.	W150,969,000.
b.	W199,695,000.
c.	W202,895,000.
d.	W251,630,000


2.	Reinhoff Inc. reported total assets of €2,600,000, including €435,000 for inventory, and equity of €1,490,0000 on the December 31, 2011 statement of financial position. Reinhoff subsequently determined that the ending inventory was understated by €63,000. What is the corrected amount of equity for the year?
a.	€0.
b.	€1,427,000.
c.	€1,490,000.
d.	€1,553,000.


3.	At December 31, 2011, Murchi Company reported total assets of Rs22,320,000, including inventory of Rs5,580,000 and net income of Rs7,365,600 for 2011.The reported inventory was overstated by Rs1,020,000. Which of the following is true with regard to Murchi- 2011 financial statements (ignore income taxes)?
a.	Total assets are understated and total equity is overstated by Rs1,020,000.
b.	Cost of goods sold is understated and total equity is overstated by Rs1,020,000.
c.	Cost of goods sold and total equity are both understated by Rs1,020,000.
d.	Total assets and Net income are both overstated by Rs1,020,000.


Use the following information to answer of questions 4 and 5.
	
	Bosio Corporation- computation of cost of goods sold is:

		Beginning inventory				€160,000
		Add: Cost of goods purchased		  405,000
		Cost of goods available for sale		  565,000
		Ending inventory				  190,000
		Cost of goods sold				€375,000


4.	Bosio- inventory turnover is 
a.	1.9 times.
b.	2.1 times.
c.	3.2 times.
d.	3.5 times.


5.	The average days to sell inventory for Bosio is 
a.	104 days.
b.	114 days.
c.	173 days.
d.	192 days.





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