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Revised income statement

I need help with a tough case. I have tried to analyze it but feel that I am not coming up with the right answer. Can you please give me your opinion?

Sarang, here are some answers to your questions:

comments: Hello Nice to see the posting. Had a detailed look at the case. I can help you on this. However, I need few clarifications.

1. The income statement given in the case is given or prepared it?

It is given

The reason is that there are some errors in the income statement. For example warehouse rental from year 1 to year 2 should increase by $40,000 only and given income statement shows increase of $80,000.

That is how it is written.

2. Also it is said that for for each additional 20,000 barrels warehouse rental cost increases by $40,000. I think it should be 2000 and not 20,000 as the total barrels aged in eahc year are 50,000, 52,000, 56,000, and 62,000.

This is how it was written.

Please clarify on these. You may like to restrict the posting to me so that I can revise the given income statement and develop revised income statement as per requirement.

I restricted it to you

Timeline and credits are perfect for me. Best Wishes

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Solution Preview


Please see the excel file attached. The excel file contains

1. Given revised income statement with ...

Solution Summary

The excel file contains
1. Given revised income statement with calculations and formulas
2. Detailed explanations for the revised income statement in the form of text boxes
3. Justification for why the revised income statement should be used.