Guns r us overstated its ending inventory in the current year by $5,000. the company incorrectly reported $100,000 of net income. explain the consequences of this error on the current period's income statement.
a. cost of goods sold will be too high by $5,000.
b. cost of goods sold will be too low by $5,000.
c. the correct net income amount should have been $105,000.

Aplant manager is considering buying additional stamping machines to accommodate increasing demand. the alternatives are to buy 1 machine, 2 machines, or 3 machines. the profits realized under each alternative are a function of whether their bid for a recent defense contract is accepted or not. the payoff table below illustrates the profits realized (in $000's) based on the different scenarios faced by the manager. alternative bid accepted bid rejected buy 1 machine $10 $5 buy 2 machines $30 $4 buy 3 machines $40 $2 refer to the information above. assume that based on historical bids with the defense contractor, the plant manager believes that there is a 65% chance that the bid will be accepted and a 35% chance that the bid will be rejected. what is the expected value under perfect information (evpi)?