Blue Sky Marine Supply reported the following comparative income statements for the years ended April 30, 2016, and 2015:

Blue Sky's president and shareholders are thrilled by the company's boost in sales and net income during 2016. Then the accountants for the company discover that ending 2015 inventory was understated by $9,500. Prepare the corrected comparative income statements for the two-year period, complete with a heading for the statements. How well did Blue Sky really perform in 2016 as compared with 2015?

Transcribed Image Text:

A1 Blue Sky Marine Supply Income Statements For the Years Ended April 30, 2016 and 2015 2016 2015 Sales revenue 4 Cost of goods sold 5 Beginning invento 144,000 115,000 16,000 77,000 93,000 16,000 9,000 73,000 82,000 (16,000 Net purchases 7Cost of goods available 8 Ending inventory 9 Cost of goods sold 10 Gross profit 11 Operating expenses 12 Net income 13 77000 67,000 25,000 42,000 66,000 49,000 27,000