Big Blue Sea Marine Supply reported the following comparative income statement for the years ended September 30, 2010, and 2009:

Big Blue Sea€™s president and shareholders are thrilled by the company€™s boost in sales and net income during 2010. Then the accountants for the company discover that ending 2009 inventory was understated by $6,500. Prepare the corrected comparative income statement for the 2-year period, complete with a heading for the statement. How well did Big Blue Sea really perform in 2010, as compared with2009?

Transcribed Image Text:

Big Blue Sea Marine Supply Income Statements For the Years Ended September 30, 2010, and 2009 2010 2009 Sales revenue $143,000 $120,000 Cost of goods sold S 9,000 67,000 76,000 (14,500) $ 14,500 ...74,000 Beginning inventory Net purchases Cost of goods available...88,500 Ending inventory... Cost of goods sold 19 Gross profit Operating expenses 69,500 73,500 28,000 45,500 61,500 58,500 24,000 34,500