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Sinclair, Inc

Question 86

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Sinclair, Inc. uses the perpetual inventory system. The company's management, under pressure to report favorable results to shareholders, counted $15,000 of inventory that had already been sold at year-end. Compared to an accurate inventory count, what is the effect of counting this inventory on the financial statements? Sinclair, Inc. uses the perpetual inventory system. The company's management, under pressure to report favorable results to shareholders, counted $15,000 of inventory that had already been sold at year-end. Compared to an accurate inventory count, what is the effect of counting this inventory on the financial statements?

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