121.Ireland Corporation's ending inventory as of December 31, 2013, was overstated by $14,000. Indicate whether each of the following statements relating to the above error is true or false._____ a)...

121.Ireland Corporation's ending inventory as of December 31, 2013, was overstated by $14,000. Indicate whether each of the following statements relating to the above error is true or false.


_____ a) Cost of goods sold is overstated in 2013 by $14,000.
_____ b) Net Income is overstated in 2013 by $14,000.
_____ c) Retained Earnings is understated at 12/31/13 by $28,000.
_____ d) Beginning inventory will be understated in 2014 by $14,000.
_____ e) Retained Earnings will not be affected by this error at the end of 2014.

122.Kurtz Company has provided the following figures as of December 31, 2013: Sales, $600,000; cost of goods sold, $320,000; net income, $120,000; inventory, $64,000. Indicate whether each of the above statements pertaining to the Kurtz Company is true or false.


_____ a) Kurtz's inventory turnover is 5.0.
_____ b) Kurtz's average number of days to sell inventory ratio is 39.5.
_____ c) Kurtz could increase its inventory turnover by increasing prices.
_____ d) Kurtz's gross margin as a percentage of sales was 46.7%.
_____ e) A local competitor in the same line of business has an inventory turnover of 6.5. Assuming each firm has approximately the same gross margin rate, Kurtz is likely to be more profitable than the competitor.