firepropr85
31.03.2020 •
Business
Reformulating Financial Statements For Warranty Expense
Over the past four years, Hashwari Corporation reported sales revenue and warranty expense as follows.
2014 2015 2016 2017
Sales revenue $5,100,000 $5,300,000 $5,482,000 $5,804,920
Warranty expense 109,800 108,700 123,100 113,000
We wish to reformulate the income statement to reflect a constant proportion of warranty expense to sales over the four-year period. What is our warranty expense adjustment for each year?
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